FMVA FINAL EXAM (2025/2026)
Actual Exam with Complete Questions and Correct Answers | Financial Modeling &
Valuation Analyst | Corporate Finance Institute
Overview
This 2025/2026 validated resource contains the complete FMVA Final Exam with
actual questions and verified correct answers, directly aligned with current
Corporate Finance Institute certification standards. Essential for finance professionals
pursuing Financial Modeling & Valuation Analyst certification and demonstrating mastery in
financial analysis, modeling, and business valuation.
Key Features
✓ 120-Question Comprehensive Exam matching FMVA certification format
✓ Advanced Financial Modeling with Excel applications
✓ Business Valuation Techniques with real-world scenarios
✓ Updated 2025/2026 CFI curriculum and industry standards
✓ Integrated Case Studies with comprehensive analysis
Content Domains
• Financial Statement Analysis (25 Questions)
• Corporate Finance & Valuation (23 Questions)
• Financial Modeling & Forecasting (22 Questions)
• M&A and Leveraged Buyouts (18 Questions)
• Dashboard & Presentation Skills (17 Questions)
• Professional Ethics & Standards (15 Questions)
Answer Format
Verified correct answers in bold green with:
• Financial calculation methodologies
• Modeling technique justifications
• Valuation approach rationales
• Analytical framework applications
Critical Updates 2025/2026
NEW - Enhanced data analytics integration
UPDATED - AI in financial forecasting applications
REVISED - Sustainability and ESG valuation metrics
MODIFIED - Real-time financial dashboard protocols
FINANCIAL STATEMENT ANALYSIS (Questions 1–25)
1. Which financial statement provides the most comprehensive view of a
company's financial position?
a) Income Statement
b) Balance Sheet
, c) Cash Flow Statement
d) Statement of Retained Earnings
Rationale: Shows assets, liabilities, and equity at a point in time.
2. The current ratio is calculated as?
a) Current Assets - Current Liabilities
b) Current Assets / Current Liabilities
c) Total Assets / Total Liabilities
d) Net Income / Total Assets
Rationale: Measures short-term liquidity.
3. A quick ratio below 1.0 typically indicates?
a) Strong liquidity
b) Potential liquidity issues
c) High profitability
d) Low debt
Rationale: May struggle to meet short-term obligations.
4. Which depreciation method results in the highest expense in the first
year?
a) Straight-line
b) Double-declining balance
c) Units of production
d) Sum-of-years-digits
Rationale: Accelerated method front-loads expense.
5. EBITDA margin is calculated as?
a) EBITDA / Total Assets
b) EBITDA / Revenue
c) Net Income / Revenue
d) Gross Profit / Revenue
Rationale: Measures operational efficiency.
6. Which is NOT a component of operating income?
a) Gross profit
b) Operating expenses
c) Interest expense
d) Depreciation
Rationale: Interest is below operating line.
7. The debt-to-equity ratio measures?
a) Profitability
b) Financial leverage
c) Liquidity
d) Efficiency
Rationale: Capital structure indicator.
8. Return on Assets (ROA) formula?
a) Net Income / Shareholders' Equity
b) Net Income / Average Total Assets
c) EBIT / Total Assets
d) Revenue / Total Assets
Rationale: Asset efficiency measure.
, 9. A high accounts receivable turnover ratio indicates?
a) Efficient collection process
b) Poor credit policies
c) High bad debt expense
d) Low sales
Rationale: Faster conversion to cash.
10. Which is a contra-account to accounts receivable?
a) Allowance for doubtful accounts
b) Accumulated depreciation
c) Discount on bonds payable
d) Treasury stock
Rationale: Reduces A/R balance.
11. The times interest earned ratio is?
a) EBIT / Interest Expense
b) EBITDA / Interest Expense
c) Net Income / Interest Expense
d) Revenue / Interest Expense
Rationale: Debt servicing ability.
12. Which is included in other comprehensive income?
a) Foreign currency translation adjustments
b) Net income
c) Dividends paid
d) Stock-based compensation
Rationale: Bypasses income statement.
13. The cash conversion cycle formula?
a) Days Inventory Outstanding + Days Sales Outstanding - Days Payables
Outstanding
b) DIO + DSO + DPO
c) DSO - DIO - DPO
d) DPO / DSO
Rationale: Cash flow timing.
14. A negative cash conversion cycle indicates?
a) Company receives cash before paying suppliers
b) High inventory levels
c) Slow collections
d) High payables
Rationale: Efficient working capital.
15. Which is a non-cash expense?
a) Depreciation
b) Salaries
c) Rent
d) Utilities
Rationale: No cash outflow.
16. Free cash flow formula?
a) Net Income + Depreciation
b) Cash Flow from Operations - Capital Expenditures
c) EBITDA - Taxes
Actual Exam with Complete Questions and Correct Answers | Financial Modeling &
Valuation Analyst | Corporate Finance Institute
Overview
This 2025/2026 validated resource contains the complete FMVA Final Exam with
actual questions and verified correct answers, directly aligned with current
Corporate Finance Institute certification standards. Essential for finance professionals
pursuing Financial Modeling & Valuation Analyst certification and demonstrating mastery in
financial analysis, modeling, and business valuation.
Key Features
✓ 120-Question Comprehensive Exam matching FMVA certification format
✓ Advanced Financial Modeling with Excel applications
✓ Business Valuation Techniques with real-world scenarios
✓ Updated 2025/2026 CFI curriculum and industry standards
✓ Integrated Case Studies with comprehensive analysis
Content Domains
• Financial Statement Analysis (25 Questions)
• Corporate Finance & Valuation (23 Questions)
• Financial Modeling & Forecasting (22 Questions)
• M&A and Leveraged Buyouts (18 Questions)
• Dashboard & Presentation Skills (17 Questions)
• Professional Ethics & Standards (15 Questions)
Answer Format
Verified correct answers in bold green with:
• Financial calculation methodologies
• Modeling technique justifications
• Valuation approach rationales
• Analytical framework applications
Critical Updates 2025/2026
NEW - Enhanced data analytics integration
UPDATED - AI in financial forecasting applications
REVISED - Sustainability and ESG valuation metrics
MODIFIED - Real-time financial dashboard protocols
FINANCIAL STATEMENT ANALYSIS (Questions 1–25)
1. Which financial statement provides the most comprehensive view of a
company's financial position?
a) Income Statement
b) Balance Sheet
, c) Cash Flow Statement
d) Statement of Retained Earnings
Rationale: Shows assets, liabilities, and equity at a point in time.
2. The current ratio is calculated as?
a) Current Assets - Current Liabilities
b) Current Assets / Current Liabilities
c) Total Assets / Total Liabilities
d) Net Income / Total Assets
Rationale: Measures short-term liquidity.
3. A quick ratio below 1.0 typically indicates?
a) Strong liquidity
b) Potential liquidity issues
c) High profitability
d) Low debt
Rationale: May struggle to meet short-term obligations.
4. Which depreciation method results in the highest expense in the first
year?
a) Straight-line
b) Double-declining balance
c) Units of production
d) Sum-of-years-digits
Rationale: Accelerated method front-loads expense.
5. EBITDA margin is calculated as?
a) EBITDA / Total Assets
b) EBITDA / Revenue
c) Net Income / Revenue
d) Gross Profit / Revenue
Rationale: Measures operational efficiency.
6. Which is NOT a component of operating income?
a) Gross profit
b) Operating expenses
c) Interest expense
d) Depreciation
Rationale: Interest is below operating line.
7. The debt-to-equity ratio measures?
a) Profitability
b) Financial leverage
c) Liquidity
d) Efficiency
Rationale: Capital structure indicator.
8. Return on Assets (ROA) formula?
a) Net Income / Shareholders' Equity
b) Net Income / Average Total Assets
c) EBIT / Total Assets
d) Revenue / Total Assets
Rationale: Asset efficiency measure.
, 9. A high accounts receivable turnover ratio indicates?
a) Efficient collection process
b) Poor credit policies
c) High bad debt expense
d) Low sales
Rationale: Faster conversion to cash.
10. Which is a contra-account to accounts receivable?
a) Allowance for doubtful accounts
b) Accumulated depreciation
c) Discount on bonds payable
d) Treasury stock
Rationale: Reduces A/R balance.
11. The times interest earned ratio is?
a) EBIT / Interest Expense
b) EBITDA / Interest Expense
c) Net Income / Interest Expense
d) Revenue / Interest Expense
Rationale: Debt servicing ability.
12. Which is included in other comprehensive income?
a) Foreign currency translation adjustments
b) Net income
c) Dividends paid
d) Stock-based compensation
Rationale: Bypasses income statement.
13. The cash conversion cycle formula?
a) Days Inventory Outstanding + Days Sales Outstanding - Days Payables
Outstanding
b) DIO + DSO + DPO
c) DSO - DIO - DPO
d) DPO / DSO
Rationale: Cash flow timing.
14. A negative cash conversion cycle indicates?
a) Company receives cash before paying suppliers
b) High inventory levels
c) Slow collections
d) High payables
Rationale: Efficient working capital.
15. Which is a non-cash expense?
a) Depreciation
b) Salaries
c) Rent
d) Utilities
Rationale: No cash outflow.
16. Free cash flow formula?
a) Net Income + Depreciation
b) Cash Flow from Operations - Capital Expenditures
c) EBITDA - Taxes
