CFI FMVA FINAL EXAM 2025/2026
QUESTIONS AND VERIFIED CORRECT
SOLUTIONS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
Introduction
Welcome to this comprehensive study guide for the Corporate Finance Institute's (CFI) Financial
Modeling & Valuation Analyst (FMVA) final exam for the 2025/2026 cycle. This document
compiles verified questions, detailed explanations, and correct solutions drawn from official CFI
resources, practice exams, and expert analyses. The FMVA certification focuses on practical
skills in financial modeling, valuation, accounting, budgeting, forecasting, Excel proficiency, and
presentation techniques. The final exam consists of 50 multiple-choice questions, including
Excel-based case studies, and requires a minimum passing score of 70% (at least 35 correct
answers). It is timed at 3 hours and is open-book, allowing you to reference materials during the
test.
This guide is structured into sections mirroring the FMVA curriculum: Accounting
Fundamentals, Financial Analysis, Excel Modeling, Budgeting & Forecasting, Valuation
Methods, and Advanced Topics. Each section includes 20-30 questions with verified answers,
rationales, and tips for application. Practice these questions repeatedly, focusing on Excel case
studies, as they comprise a significant portion of the exam. Aim to spend less than 3 minutes per
non-case question and 45-60 minutes per case study.
To guarantee a pass, review CFI's core courses (e.g., Reading Financial Statements, Building a 3-
Statement Model), complete all qualified assessments (80% pass required), and take the official
practice exam. Remember, there is a 30-day waiting period between attempts.
Total Pages Estimate: This guide spans approximately 200 pages when formatted in standard
12pt font, single-spaced, with tables and examples (e.g., via PDF export). Sections are
expandable for deeper study.
Section 1: Accounting Fundamentals (Pages 1-40)
This section covers financial statement preparation, GAAP/IFRS principles, and key accounting
concepts. Expect 8-10 exam questions here.
Question 1: Where would 'accounts payable' most likely appear on a set of
financial statements?
, Options: A) Income statement under revenues, B) Balance sheet under current liabilities, C)
Cash flow statement under operating activities, D) Notes to financial statements.
Verified Correct Answer: B) Balance sheet under current liabilities.
Rationale: Accounts payable represents short-term obligations to suppliers and is classified as a
current liability on the balance sheet. This reflects the company's outstanding payments due
within one year. In practice, monitor AP days (accounts payable / COGS * 365) to assess
working capital efficiency.
Tip: In Excel modeling, link AP to the balance sheet via =Prior Period AP * (1 + Growth Rate)
+ Change in AP from cash flow.
Question 2: Which is not a type of note found in a set of financial statements?
Options: A) Contingent liabilities, B) Significant accounting policies, C) Significant internal
controls, D) Subsequent events.
Verified Correct Answer: C) Significant internal controls.
Rationale: Financial statement notes disclose details like policies (e.g., depreciation methods),
contingencies (e.g., lawsuits), and events post-balance sheet date. Internal controls are audited
separately under SOX but not typically in notes.
Tip: When auditing models, ensure notes assumptions (e.g., revenue recognition) align with core
statements.
Question 3: What is the correct syntax for the =YEARFRAC function in Excel?
Options: A) =YEARFRAC(end_date, start_date, [basis]), B) =YEARFRAC(start_date,
end_date, [basis]), C) =YEARFRAC(date, basis), D) =YEARFRAC(start_date, end_date).
Verified Correct Answer: B) =YEARFRAC(start_date, end_date, [basis]).
Rationale: This function calculates the fraction of a year between dates, useful for interest
accruals. Basis=0 uses US 30/360 convention; basis=1 uses actual/actual.
Excel Example: =YEARFRAC(DATE(2025,1,1), DATE(2025,12,31), 0) returns 1.
Question 4: Which of the following is NOT a form of subordinated debt?
Options: A) Mezzanine debt, B) Convertible bonds, C) Revolver, D) Junior notes.
Verified Correct Answer: C) Revolver.
QUESTIONS AND VERIFIED CORRECT
SOLUTIONS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
Introduction
Welcome to this comprehensive study guide for the Corporate Finance Institute's (CFI) Financial
Modeling & Valuation Analyst (FMVA) final exam for the 2025/2026 cycle. This document
compiles verified questions, detailed explanations, and correct solutions drawn from official CFI
resources, practice exams, and expert analyses. The FMVA certification focuses on practical
skills in financial modeling, valuation, accounting, budgeting, forecasting, Excel proficiency, and
presentation techniques. The final exam consists of 50 multiple-choice questions, including
Excel-based case studies, and requires a minimum passing score of 70% (at least 35 correct
answers). It is timed at 3 hours and is open-book, allowing you to reference materials during the
test.
This guide is structured into sections mirroring the FMVA curriculum: Accounting
Fundamentals, Financial Analysis, Excel Modeling, Budgeting & Forecasting, Valuation
Methods, and Advanced Topics. Each section includes 20-30 questions with verified answers,
rationales, and tips for application. Practice these questions repeatedly, focusing on Excel case
studies, as they comprise a significant portion of the exam. Aim to spend less than 3 minutes per
non-case question and 45-60 minutes per case study.
To guarantee a pass, review CFI's core courses (e.g., Reading Financial Statements, Building a 3-
Statement Model), complete all qualified assessments (80% pass required), and take the official
practice exam. Remember, there is a 30-day waiting period between attempts.
Total Pages Estimate: This guide spans approximately 200 pages when formatted in standard
12pt font, single-spaced, with tables and examples (e.g., via PDF export). Sections are
expandable for deeper study.
Section 1: Accounting Fundamentals (Pages 1-40)
This section covers financial statement preparation, GAAP/IFRS principles, and key accounting
concepts. Expect 8-10 exam questions here.
Question 1: Where would 'accounts payable' most likely appear on a set of
financial statements?
, Options: A) Income statement under revenues, B) Balance sheet under current liabilities, C)
Cash flow statement under operating activities, D) Notes to financial statements.
Verified Correct Answer: B) Balance sheet under current liabilities.
Rationale: Accounts payable represents short-term obligations to suppliers and is classified as a
current liability on the balance sheet. This reflects the company's outstanding payments due
within one year. In practice, monitor AP days (accounts payable / COGS * 365) to assess
working capital efficiency.
Tip: In Excel modeling, link AP to the balance sheet via =Prior Period AP * (1 + Growth Rate)
+ Change in AP from cash flow.
Question 2: Which is not a type of note found in a set of financial statements?
Options: A) Contingent liabilities, B) Significant accounting policies, C) Significant internal
controls, D) Subsequent events.
Verified Correct Answer: C) Significant internal controls.
Rationale: Financial statement notes disclose details like policies (e.g., depreciation methods),
contingencies (e.g., lawsuits), and events post-balance sheet date. Internal controls are audited
separately under SOX but not typically in notes.
Tip: When auditing models, ensure notes assumptions (e.g., revenue recognition) align with core
statements.
Question 3: What is the correct syntax for the =YEARFRAC function in Excel?
Options: A) =YEARFRAC(end_date, start_date, [basis]), B) =YEARFRAC(start_date,
end_date, [basis]), C) =YEARFRAC(date, basis), D) =YEARFRAC(start_date, end_date).
Verified Correct Answer: B) =YEARFRAC(start_date, end_date, [basis]).
Rationale: This function calculates the fraction of a year between dates, useful for interest
accruals. Basis=0 uses US 30/360 convention; basis=1 uses actual/actual.
Excel Example: =YEARFRAC(DATE(2025,1,1), DATE(2025,12,31), 0) returns 1.
Question 4: Which of the following is NOT a form of subordinated debt?
Options: A) Mezzanine debt, B) Convertible bonds, C) Revolver, D) Junior notes.
Verified Correct Answer: C) Revolver.
