CFI FMVA Final Exam Questions and
Answers
1. Where would 'accounts payable' most likely appear on a set of
financial statements?
Answer On the balance sheet under 'current liabilities'
2. Which is not a type of note found in a set of financial statements?
Answer Significant internal controls
3. What is the correct syntax for the =YEARFRAC
function?
Answer =YEAR- FRAC(start_date,end_date,[basis])
4. Which of the following is NOT a form of subordinated debt?
Answer Revolver
5. Which of the following is not a function of public accounting firms?
Answer Due diligence
6. Which ratio would you use to determine the profitability of the
goods sold by a company?
Answer Gross Profit Margin
1/
9
, 7. Horizontal analysis allows us to analyze performance over
Answer
Time
8. If a company wanted to finance the purchase of equipment
without diluting shareholders equity, which of the following
operation could it consider?
Answer Issuing convertible bonds
9. When calculating the quick ratio or "acid test" which current asset
or liability is omitted?
Answer Inventory
10. Using the PEST analysis, which of the following should a
company like Apple Inc. worry about the most?
Answer Technological forecasting and trends
11. Identify which of the following is NOT a good way for
managers to use a budget.
Answer Managers can use budgets alone to estimate how well they perform over a period of
time
12. Which of the following components is not necessary to have in
every master budget?
2/
9
Answers
1. Where would 'accounts payable' most likely appear on a set of
financial statements?
Answer On the balance sheet under 'current liabilities'
2. Which is not a type of note found in a set of financial statements?
Answer Significant internal controls
3. What is the correct syntax for the =YEARFRAC
function?
Answer =YEAR- FRAC(start_date,end_date,[basis])
4. Which of the following is NOT a form of subordinated debt?
Answer Revolver
5. Which of the following is not a function of public accounting firms?
Answer Due diligence
6. Which ratio would you use to determine the profitability of the
goods sold by a company?
Answer Gross Profit Margin
1/
9
, 7. Horizontal analysis allows us to analyze performance over
Answer
Time
8. If a company wanted to finance the purchase of equipment
without diluting shareholders equity, which of the following
operation could it consider?
Answer Issuing convertible bonds
9. When calculating the quick ratio or "acid test" which current asset
or liability is omitted?
Answer Inventory
10. Using the PEST analysis, which of the following should a
company like Apple Inc. worry about the most?
Answer Technological forecasting and trends
11. Identify which of the following is NOT a good way for
managers to use a budget.
Answer Managers can use budgets alone to estimate how well they perform over a period of
time
12. Which of the following components is not necessary to have in
every master budget?
2/
9
