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

EXAM

Exam Solution
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CFI FMVA 6 2026 A+ GRADE ASSURED COMPLETE SOLU
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TIONS AND VERIFIED ANSWERS (2117E) ms ms ms ms




QUESTION 1 ms




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 acc
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ounting standards are based.
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QUESTION 2 ms




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 ms




3.
ANSWER

Conservatism principle:: It provides guidance on how to record transactions when there is uncertaint
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y. Historical Cost:It states that assets and liabilities are recorded on the financial statements at the c
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ost at which they were acquired or assumed. Objectivity; It states that financial statements must be
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free from bias and based on verifiable evidence. Economic Entity: It states that transactions carried
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out by a business are separated from those conducted by its owner. Matching:It states that the expe
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nses of a business should be recorded in the periods in which the corresponding revenues are earne
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d.



QUESTION 4 ms




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

160



QUESTION 5 ms




Which of the following characteristics does not enhance the usefulness of financial inf
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ormation?
ANSWER

Relevance



QUESTION 6 ms




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
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previous evaluations. ms




QUESTION 7 ms




Which of the following is not a correct description of how an operating lease is recog
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nized 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 ms




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



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




ANSWER

9,652



QUESTION 9 ms

, 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 payab
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le in the future.
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QUESTION 10 ms




10.
ANSWER

Deductible Temporary differences Generally arise when the tax base of the assets is greater than the
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carrying amount Generally arise when there are differences that result in current accounting incom
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e being greater than taxable income Give rise to deferred tax assets Taxable Temporary Diffferences
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Arise when the tax base of the liabilities is greater than the carrying amount Arise when the carryin
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g amount of the liabilities is greater than the tax base Taxable Temporary Differences
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QUESTION 11 ms




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

372



QUESTION 12 ms




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

Non-vesting condition ms




QUESTION 13 ms




Which of the following is not a required criterion for a transaction to be considered a
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business combination?
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ANSWER

Presence of outputs ms ms