CFI FMVA EXAM A+ GRADE ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSWERS

EXAM

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CFI FMVA 6 2026 A+ GRADE ASSURED COMPLETE SOLU
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TIONS AND VERIFIED ANSWERS (1AD25) ga ga ga ga




QUESTION 1 ga




Which of the following best describes accounting principles in general?
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ANSWER

They outline the fundamental rules and concepts and establish the framework on which detailed accou
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nting standards are based.
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QUESTION 2 ga




A sound accounting framework allows for all of the following benefits except:
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ANSWER

Identical items being reported on the financial statements of different companies
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QUESTION 3 ga




3.
ANSWER

Conservatism principle:: It provides guidance on how to record transactions when there is uncertainty.
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Historical Cost:It states that assets and liabilities are recorded on the financial statements at the cost at
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which they were acquired or assumed. Objectivity; It states that financial statements must be free from
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bias and based on verifiable evidence. Economic Entity: It states that transactions carried out by a busi
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ness are separated from those conducted by its owner. Matching:It states that the expenses of a busines
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s should be recorded in the periods in which the corresponding revenues are earned.
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QUESTION 4 ga




On March 1st, Mr. Smithe signed up for a fitness program at Fit Co. and paid $960 for the
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entire program upfront. The program includes a total of 12 sessions and two sessions a
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,re delivered each month. How much revenue from Mr. Smithe should Fit Co. recognize at
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the end of March?
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ANSWER

160



QUESTION 5 ga




Which of the following characteristics does not enhance the usefulness of financial infor
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mation?
ANSWER

Relevance



QUESTION 6 ga




Identify the statement that is most accurate.
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ANSWER

Financial information that has confirmatory value provides feedback that either confirms or changes pr
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evious evaluations. ga




QUESTION 7 ga




Which of the following is not a correct description of how an operating lease is recogniz
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ed on the financial statements?
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ANSWER

The amortization expense of the right-of-use asset is calculated using the straight-
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line depreciation method over the lease term.
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QUESTION 8 ga




Company Inc. enters into a 10- ga ga ga ga ga



year finance lease at the beginning of 2021 for a total of $250,000. The annual lease pay
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ment is $25,000 (payable at the end of each year) and the rate implicit in the lease is 5
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%. No initial direct costs are incurred. How much interest expense should be recognized
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in 2021?
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ANSWER

9,652



QUESTION 9 ga

, Which of the following statements about income taxes is not correct?
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ANSWER

Deductible temporary differences give rise to deferred tax liabilities, meaning that more tax is payable i
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n the future.
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QUESTION 10 ga




10.
ANSWER

Deductible Temporary differences Generally arise when the tax base of the assets is greater than the ca
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rrying amount Generally arise when there are differences that result in current accounting income bein
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g greater than taxable income Give rise to deferred tax assets Taxable Temporary Diffferences Arise wh
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en the tax base of the liabilities is greater than the carrying amount Arise when the carrying amount of
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the liabilities is greater than the tax base Taxable Temporary Differences
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QUESTION 11 ga




Calculate the deferred tax liability given the following items incurred in 2020 by Compa
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ny
B. Bonuses are tax deductible only in the year in which they are paid.
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ANSWER

372



QUESTION 12 ga




Company Co. has 1,000 employees and it decides to grant each of the employees 200 sha
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re options as part of its new rewards plan. The options are exercisable over 5 years and
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subject only to the condition that the company's stock price must be at least 30% higher
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than its original issue price. Company Co.'s share-based payments are subject to:
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ANSWER

Non-vesting condition ga




QUESTION 13 ga




Which of the following is not a required criterion for a transaction to be considered a bu
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siness combination? ga




ANSWER

Presence of outputs ga ga