CFI FMVA EXAMINATION TEST 2026 FULL
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Why are profits and cash flow not the same thing. Answer:
Accounting differences
◉ The idea of matching over time. Answer:
◉ CFS Accounting. Answer: Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
◉ Cash accounting method. Answer: record income and expenditures at
the time the money changes hands
◉ Cash accounting method. Answer: An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
,◉ Accrual Accounting. Answer: recording in each fiscal period
applicable expenses, whether paid or not, and income earned, whether
collected or not.
◉ Accrual Basis Accounting. Answer: reporting income when it is
earned and expenses when they are incurred
◉ Accrual Basis Accounting. Answer: the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
◉ Accrual Basis Accounting. Answer: Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
◉ accrued expenses. Answer: expenses incurred in one fiscal period but
not paid until a later fiscal period
◉ accrued expenses. Answer: expenses incurred but not yet paid in cash
or recorded
◉ Cash flow from operating activities. Answer: The net amount of cash
provided from operating activities.
,◉ cash flow from financing activities. Answer:
◉ The idea of matching over time. Answer:
◉ CFS Accounting. Answer: Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
◉ Cash accounting method. Answer: record income and expenditures at
the time the money changes hands
◉ Cash accounting method. Answer: An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
◉ Accrual Accounting. Answer: recording in each fiscal period
applicable expenses, whether paid or not, and income earned, whether
collected or not.
◉ Accrual Basis Accounting. Answer: reporting income when it is
earned and expenses when they are incurred
, ◉ Accrual Basis Accounting. Answer: the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
◉ Accrual Basis Accounting. Answer: Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
◉ accrued expenses. Answer: expenses incurred in one fiscal period but
not paid until a later fiscal period
◉ accrued expenses. Answer: expenses incurred but not yet paid in cash
or recorded
◉ Cash flow from operating activities. Answer: The net amount of cash
provided from operating activities.
◉ cash flow from financing activities. Answer: The section of the
statement of cash flows that reports cash flows from transactions
affecting the equity and debt of the business.
◉ cash flow from financing activities. Answer: items related to debt,
dividends, and issuing or repurchasing shares
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Why are profits and cash flow not the same thing. Answer:
Accounting differences
◉ The idea of matching over time. Answer:
◉ CFS Accounting. Answer: Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
◉ Cash accounting method. Answer: record income and expenditures at
the time the money changes hands
◉ Cash accounting method. Answer: An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
,◉ Accrual Accounting. Answer: recording in each fiscal period
applicable expenses, whether paid or not, and income earned, whether
collected or not.
◉ Accrual Basis Accounting. Answer: reporting income when it is
earned and expenses when they are incurred
◉ Accrual Basis Accounting. Answer: the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
◉ Accrual Basis Accounting. Answer: Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
◉ accrued expenses. Answer: expenses incurred in one fiscal period but
not paid until a later fiscal period
◉ accrued expenses. Answer: expenses incurred but not yet paid in cash
or recorded
◉ Cash flow from operating activities. Answer: The net amount of cash
provided from operating activities.
,◉ cash flow from financing activities. Answer:
◉ The idea of matching over time. Answer:
◉ CFS Accounting. Answer: Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
◉ Cash accounting method. Answer: record income and expenditures at
the time the money changes hands
◉ Cash accounting method. Answer: An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
◉ Accrual Accounting. Answer: recording in each fiscal period
applicable expenses, whether paid or not, and income earned, whether
collected or not.
◉ Accrual Basis Accounting. Answer: reporting income when it is
earned and expenses when they are incurred
, ◉ Accrual Basis Accounting. Answer: the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
◉ Accrual Basis Accounting. Answer: Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
◉ accrued expenses. Answer: expenses incurred in one fiscal period but
not paid until a later fiscal period
◉ accrued expenses. Answer: expenses incurred but not yet paid in cash
or recorded
◉ Cash flow from operating activities. Answer: The net amount of cash
provided from operating activities.
◉ cash flow from financing activities. Answer: The section of the
statement of cash flows that reports cash flows from transactions
affecting the equity and debt of the business.
◉ cash flow from financing activities. Answer: items related to debt,
dividends, and issuing or repurchasing shares
