FMS Exam ACTUAL QUESTIONS AND
CORRECT ANSWERS
Cash - CORRECT ANSWER Which of the following is not a line item on a P&L?
- Gross Profit
- Net Income
- Operating Expenses
- Cash
False - CORRECT ANSWER It is not possible for a business to be profitable and short of cash.
True or False
False - CORRECT ANSWER Working Capital is the same as cash flow.
True or False
33% - CORRECT ANSWER Assuming you operated at 67% Variable Cost, what is your CMR
for that time frame?
Balance Sheet - CORRECT ANSWER A financial snapshot taken at a specific point in time of
all the assets owned by the company, and all the claims against those assets describes which financial
statement?
False - CORRECT ANSWER Profit and Loss Statements tell you how much you owe and how
much you own. It is also called a Cash Flow Statement.
True or False
Total weekly fixed costs / CMR - CORRECT ANSWER What is the formula for calculating
break-even?
, Depreciation - CORRECT ANSWER Which of the following is a non cash expense?
- Depreciation
- Credit card fees
- Store Insurance
- Interest
P&L, Balance Sheet, Cash Flow - CORRECT ANSWER What are the 3 main financial
statements?
Liabilities - CORRECT ANSWER Which of the following is a category or element of the
balance sheet?
- Expenses
- Losses
- Liabilities
- Gains
Land - CORRECT ANSWER Which of the following would NOT be a current asset?
- Prepaid Insurance
- Supplies
- Land
- Accounts Receivable
$70k - CORRECT ANSWER ABC Pizza Co. has current assets of $50k and total assets of
$150k. ABC has current liabilities of $30k and total liabilities of $80k. What is the amount of ABC's
owner's equity?
Online ordering fees - CORRECT ANSWER Which is not a fixed cost?
CORRECT ANSWERS
Cash - CORRECT ANSWER Which of the following is not a line item on a P&L?
- Gross Profit
- Net Income
- Operating Expenses
- Cash
False - CORRECT ANSWER It is not possible for a business to be profitable and short of cash.
True or False
False - CORRECT ANSWER Working Capital is the same as cash flow.
True or False
33% - CORRECT ANSWER Assuming you operated at 67% Variable Cost, what is your CMR
for that time frame?
Balance Sheet - CORRECT ANSWER A financial snapshot taken at a specific point in time of
all the assets owned by the company, and all the claims against those assets describes which financial
statement?
False - CORRECT ANSWER Profit and Loss Statements tell you how much you owe and how
much you own. It is also called a Cash Flow Statement.
True or False
Total weekly fixed costs / CMR - CORRECT ANSWER What is the formula for calculating
break-even?
, Depreciation - CORRECT ANSWER Which of the following is a non cash expense?
- Depreciation
- Credit card fees
- Store Insurance
- Interest
P&L, Balance Sheet, Cash Flow - CORRECT ANSWER What are the 3 main financial
statements?
Liabilities - CORRECT ANSWER Which of the following is a category or element of the
balance sheet?
- Expenses
- Losses
- Liabilities
- Gains
Land - CORRECT ANSWER Which of the following would NOT be a current asset?
- Prepaid Insurance
- Supplies
- Land
- Accounts Receivable
$70k - CORRECT ANSWER ABC Pizza Co. has current assets of $50k and total assets of
$150k. ABC has current liabilities of $30k and total liabilities of $80k. What is the amount of ABC's
owner's equity?
Online ordering fees - CORRECT ANSWER Which is not a fixed cost?
