Practice Final FMVA EXAM Review And fully
solved & updated 2025-2026(latest version verified
for accuracy)
Within how many months of the balance sheet date is a current liability
usually payable? - answer--12 months
What is an advantage to using a multi-step income statement? -
answer--Direct expenses and indirect expenses are broken out
separately
The result of =ROUND(513.2413,2) is __ - answer--513.24
Which of the following is not a function of public accounting firms? -
answer--Financial Planning & Analysis
Which of the following is the correct ordering of the capital stack (from
most secure to least secure)? - answer--Senior debt -> Subordinated
debt-> Equity
What does a diagram of a perfectly positive correlation look like? -
answer--A perfectly straight line that slopes from the bottom left to the
top right quardrant
, If the total assets to equity ratio of a company is increasing, it is possible
that: - answer--The company is increasing the use of debt and getting
higher financial leverage
Which ratio is not one of the three ratios that multiply together to
produce the return on equity ratio? - answer--Operating profit margin.
ROE = Total asset turnover x Financial leverage x Net profit margin.
Working capital movement is included in which section of the cash flow
statement? - answer--Operating activities. Working capital is used in
operations, so it should be included in the operations section of the
cash flow statement.
When calculating the quick ratio or "acid test" which current asset or
liability is omitted? - answer--Inventory. Inventory is removed from
quick ratio because it assumes that inventories cannot be sold as fast as
other current assets.
What's the forecasted capital expenditure based on the information
below?
Net PP&E beginning of period: 15,000
Net PP&E end of period: 17,500
Depreciation expenses: 2,400 - answer--4,900. Capital expenditure =
17,500 - 15,000 + 2,400 = 4,900
solved & updated 2025-2026(latest version verified
for accuracy)
Within how many months of the balance sheet date is a current liability
usually payable? - answer--12 months
What is an advantage to using a multi-step income statement? -
answer--Direct expenses and indirect expenses are broken out
separately
The result of =ROUND(513.2413,2) is __ - answer--513.24
Which of the following is not a function of public accounting firms? -
answer--Financial Planning & Analysis
Which of the following is the correct ordering of the capital stack (from
most secure to least secure)? - answer--Senior debt -> Subordinated
debt-> Equity
What does a diagram of a perfectly positive correlation look like? -
answer--A perfectly straight line that slopes from the bottom left to the
top right quardrant
, If the total assets to equity ratio of a company is increasing, it is possible
that: - answer--The company is increasing the use of debt and getting
higher financial leverage
Which ratio is not one of the three ratios that multiply together to
produce the return on equity ratio? - answer--Operating profit margin.
ROE = Total asset turnover x Financial leverage x Net profit margin.
Working capital movement is included in which section of the cash flow
statement? - answer--Operating activities. Working capital is used in
operations, so it should be included in the operations section of the
cash flow statement.
When calculating the quick ratio or "acid test" which current asset or
liability is omitted? - answer--Inventory. Inventory is removed from
quick ratio because it assumes that inventories cannot be sold as fast as
other current assets.
What's the forecasted capital expenditure based on the information
below?
Net PP&E beginning of period: 15,000
Net PP&E end of period: 17,500
Depreciation expenses: 2,400 - answer--4,900. Capital expenditure =
17,500 - 15,000 + 2,400 = 4,900
