CFI FMVA Final Exam Study Guide |
Financial Modeling & Valuation Analyst
Prep|| GRADED A+|| LATEST UPDATE
2026
Where would 'accounts payable' most likely appear on a set of financial statements? -
CORRECTANSWER On the balance sheet under 'current liabilities'
Which is not a type of note found in a set of financial statements? -CORRECTANSWER
Significant internal controls
What is the correct syntax for the =YEARFRAC function? -CORRECTANSWER
=YEARFRAC(start_date,end_date,[basis])
Which of the following is NOT a form of subordinated debt? -CORRECTANSWER
Revolver
Which of the following is not a function of public accounting firms? -
CORRECTANSWER Due dilligence
Which ratio would you use to determine the profitability of the goods sold by a
company? -CORRECTANSWER Gross Profit Margin
, Horizontal analysis allows us to analyze performance over: -CORRECTANSWER Time
If a company wanted to finance the purchase of equipment without diluting shareholders
equity, which of the following operation could it consider? -CORRECTANSWER Issuing
convertible bonds
When calculating the quick ratio or "acid test" which current asset or liability is omitted?
-CORRECTANSWER Inventory
Using the PEST analysis, which of the following should a company like Apple Inc. worry
about the most? -CORRECTANSWER Technological forecasting and trends
Identify which of the following is NOT a good way for managers to use a budget. -
CORRECTANSWER Managers can use budgets alone to estimate how well they
perform over a period of time
Which of the following components is not necessary to have in every master budget? -
CORRECTANSWER Direct material purchase budget
What does variable cost with economies of scale mean? -CORRECTANSWER The
higher the volume of output, the less it costs to produce one extra unit
Financial Modeling & Valuation Analyst
Prep|| GRADED A+|| LATEST UPDATE
2026
Where would 'accounts payable' most likely appear on a set of financial statements? -
CORRECTANSWER On the balance sheet under 'current liabilities'
Which is not a type of note found in a set of financial statements? -CORRECTANSWER
Significant internal controls
What is the correct syntax for the =YEARFRAC function? -CORRECTANSWER
=YEARFRAC(start_date,end_date,[basis])
Which of the following is NOT a form of subordinated debt? -CORRECTANSWER
Revolver
Which of the following is not a function of public accounting firms? -
CORRECTANSWER Due dilligence
Which ratio would you use to determine the profitability of the goods sold by a
company? -CORRECTANSWER Gross Profit Margin
, Horizontal analysis allows us to analyze performance over: -CORRECTANSWER Time
If a company wanted to finance the purchase of equipment without diluting shareholders
equity, which of the following operation could it consider? -CORRECTANSWER Issuing
convertible bonds
When calculating the quick ratio or "acid test" which current asset or liability is omitted?
-CORRECTANSWER Inventory
Using the PEST analysis, which of the following should a company like Apple Inc. worry
about the most? -CORRECTANSWER Technological forecasting and trends
Identify which of the following is NOT a good way for managers to use a budget. -
CORRECTANSWER Managers can use budgets alone to estimate how well they
perform over a period of time
Which of the following components is not necessary to have in every master budget? -
CORRECTANSWER Direct material purchase budget
What does variable cost with economies of scale mean? -CORRECTANSWER The
higher the volume of output, the less it costs to produce one extra unit
