ACCOUNTING FUNDAMENTALS FMVA
EXAM QUESTIONS & VERIFIED
CORRECT ANSWERS
Balance Sheet - correct answer ✔✔A financial statement that reports assets, liabilities, and
owner's equity on a specific date.
Income Statement - correct answer ✔✔A financial statement showing the revenue and
expenses for a fiscal period.
Statement of Cash Flows - correct answer ✔✔A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific period of
time.
Assets - correct answer ✔✔money and other valuables belonging to an individual or business
current assets - correct answer ✔✔cash and other assets expected to be exchanged for cash or
consumed within a year (Cash, inventory, accounts receivable)
inventory - correct answer ✔✔the quantity of goods that a firm has on hand
Accounts Receivable - correct answer ✔✔Amounts to be received in the future due to the sale
of goods or services
Non-current assets - correct answer ✔✔Long-term resources that will be used by the business
repeatedly over a period of time (property, plant and equipment, technology, patents,
trademarks)
, tangible assets - correct answer ✔✔physical assets, such as real estate and automobiles, that
can be held for either consumption or investment purposes
intangible assets - correct answer ✔✔Rights, privileges, and competitive advantages that result
from the ownership of long-lived assets that do not possess physical substance.
Liabilities - correct answer ✔✔Amounts owed to creditors
Shareholders' Equity - correct answer ✔✔A company's net worth or the total dollar amount
that would be returned to its shareholders if the company is liquidated after all debts are paid
off.
Current Liabilities - correct answer ✔✔liabilities due within a short time, usually within a year
Non-current liabilities - correct answer ✔✔value of debts of the business that will be payable
after more than one year
Accounts Payable - correct answer ✔✔Amounts to be paid in the future for goods or services
already acquired (typically within 30-90 days)
long-term debt - correct answer ✔✔Any loan or debt obligation with a maturity of more than a
year
Shareholders' Equity (at the beginning) - correct answer ✔✔amount that initially invested
Share capital - correct answer ✔✔The total value of capital raised from shareholders by the
issue of shares
EXAM QUESTIONS & VERIFIED
CORRECT ANSWERS
Balance Sheet - correct answer ✔✔A financial statement that reports assets, liabilities, and
owner's equity on a specific date.
Income Statement - correct answer ✔✔A financial statement showing the revenue and
expenses for a fiscal period.
Statement of Cash Flows - correct answer ✔✔A financial statement that provides financial
information about the cash receipts and cash payments of a business for a specific period of
time.
Assets - correct answer ✔✔money and other valuables belonging to an individual or business
current assets - correct answer ✔✔cash and other assets expected to be exchanged for cash or
consumed within a year (Cash, inventory, accounts receivable)
inventory - correct answer ✔✔the quantity of goods that a firm has on hand
Accounts Receivable - correct answer ✔✔Amounts to be received in the future due to the sale
of goods or services
Non-current assets - correct answer ✔✔Long-term resources that will be used by the business
repeatedly over a period of time (property, plant and equipment, technology, patents,
trademarks)
, tangible assets - correct answer ✔✔physical assets, such as real estate and automobiles, that
can be held for either consumption or investment purposes
intangible assets - correct answer ✔✔Rights, privileges, and competitive advantages that result
from the ownership of long-lived assets that do not possess physical substance.
Liabilities - correct answer ✔✔Amounts owed to creditors
Shareholders' Equity - correct answer ✔✔A company's net worth or the total dollar amount
that would be returned to its shareholders if the company is liquidated after all debts are paid
off.
Current Liabilities - correct answer ✔✔liabilities due within a short time, usually within a year
Non-current liabilities - correct answer ✔✔value of debts of the business that will be payable
after more than one year
Accounts Payable - correct answer ✔✔Amounts to be paid in the future for goods or services
already acquired (typically within 30-90 days)
long-term debt - correct answer ✔✔Any loan or debt obligation with a maturity of more than a
year
Shareholders' Equity (at the beginning) - correct answer ✔✔amount that initially invested
Share capital - correct answer ✔✔The total value of capital raised from shareholders by the
issue of shares
