Page 1 of 60
FMVA EXAM AND PRACTICE EXAM NEWEST 2025
TEST BANK| FMVA FINAL EXAM PREP WITH
COMPLETE 400 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ (BRAND NEW!!)
When analyzing the income statement, which line item do you typically
use as the denominator in the ratio? - ANSWER - Sales
What is the correct formula for calculating NOPAT? - ANSWER - EBIT
x (1 - Tax Rate)
When conducting financial analysis, what is the recommended best
practice for minimum number of years of financial statements? -
ANSWER - 5 years
What are the three ROE levers of the DuPont pyramid? - ANSWER -
Net Profit Margin x Total Asset Turnover x Financial Leverage
Which current asset or liability is omitted from this ratio? - ANSWER -
Inventory
The proper structure of a 3-statement model should contain which of the
following modules? - ANSWER - Inputs, Calculations, Outputs
pg. 1
,Page 2 of 60
What is the formula for the Capital Asset Turnover Ratio? - ANSWER -
Sales/Property, Plant & Equipment
According to the course, a 3-statement financial model can be used for
which of the following purposes? Select ALL that apply. - ANSWER -
Strategic planning, Corporate transactions, and Investment decisions
According to the course, which is the best method for calculating
interest expense? - ANSWER - Interest Rate x Average Debt Balance
Forecast the Year 1 gross profit on the previous year's number and the
assumptions. - ANSWER - 47,742
Consider EBITDA as a percentage of Revenue. What is a possible
reason for the observed EBITDA-margin in fiscal 2015? - ANSWER -
An increase in sales commissions to boost sales volumes.
What is the cost of goods sold primarily driven by for a given period? -
ANSWER - Sales volume.
Why would an increase in the company's days in A/P produce cash for a
business? - ANSWER - The company is 'stretching its payables' and
deferring a cash outflow.
pg. 2
,Page 3 of 60
Why would an increase in a businesses' days in inventory consume
cash? - ANSWER - The business is expending cash to build up its
inventory levels.
What is the Q2 2022 quarterly revenue amount implied by the accounts
receivable balance and days in A/R? - ANSWER - $26.8 million.
What is the Q3 2021 quarterly COGS amount implied by the inventory?
- ANSWER - $12.1 million.
A real-estate holdings company has the following fixed asset
detail:Buildings: $25.0 Million; Useful Life 20-years.Land: $5.0
Million.Assuming straight-line depreciation, what would the company's
total annual depreciation expense be? - ANSWER - $1.25 million.
Having a very successful year, the real-estate holdings company
manages to acquire a new property on July 1, 2021. The company has a
fiscal year-end of July 31. The details on the building and land for the
new property are as follows:BuildingCost basis - $40.0 million.Useful
life - 30 years.LandCost basis - $10.0 million.What would the
accounting depreciation expense be for the fiscal year ended July 31,
2021? - ANSWER - $111 thousand.
What does the principle of Autonomy emphasize in a business ethics
context? - ANSWER - Using knowledge responsibly while respecting
privacy and confidentiality
pg. 3
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What is a symptom of a weak ethical culture within an organization? -
ANSWER - Employees rationalize behavior with phrases like "everyone
does it."
Which factor most directly contributes to shaping an organization's
ethical culture? - ANSWER - The hierarchy, starting with leadership's
behavior and expectations
In the 10-step ethical decision-making framework introduced in this
course, what is the first step when faced with an ethical dilemma? -
ANSWER - Gather the facts and identify the stakeholders involved
A financial advisor recommends a low-cost investment that aligns with
the client's goals rather than one with a higher commission. Which
ethical approach does this demonstrate? - ANSWER - Virtue Approach
According to the utilitarian approach to ethical decision-making, what
should be prioritized? - ANSWER - Actions that provide the greatest
good for the greatest number
The debt to tangible net worth ratio is calculated as follows: - ANSWER
- Interest Bearing Liabilities / (Equity - Intangible Assets)
If the total assets to equity ratio of a company is increasing, it is possible
that: - ANSWER - The company is increasing the use of debt and getting
higher financial leverage
pg. 4
FMVA EXAM AND PRACTICE EXAM NEWEST 2025
TEST BANK| FMVA FINAL EXAM PREP WITH
COMPLETE 400 REAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ (BRAND NEW!!)
When analyzing the income statement, which line item do you typically
use as the denominator in the ratio? - ANSWER - Sales
What is the correct formula for calculating NOPAT? - ANSWER - EBIT
x (1 - Tax Rate)
When conducting financial analysis, what is the recommended best
practice for minimum number of years of financial statements? -
ANSWER - 5 years
What are the three ROE levers of the DuPont pyramid? - ANSWER -
Net Profit Margin x Total Asset Turnover x Financial Leverage
Which current asset or liability is omitted from this ratio? - ANSWER -
Inventory
The proper structure of a 3-statement model should contain which of the
following modules? - ANSWER - Inputs, Calculations, Outputs
pg. 1
,Page 2 of 60
What is the formula for the Capital Asset Turnover Ratio? - ANSWER -
Sales/Property, Plant & Equipment
According to the course, a 3-statement financial model can be used for
which of the following purposes? Select ALL that apply. - ANSWER -
Strategic planning, Corporate transactions, and Investment decisions
According to the course, which is the best method for calculating
interest expense? - ANSWER - Interest Rate x Average Debt Balance
Forecast the Year 1 gross profit on the previous year's number and the
assumptions. - ANSWER - 47,742
Consider EBITDA as a percentage of Revenue. What is a possible
reason for the observed EBITDA-margin in fiscal 2015? - ANSWER -
An increase in sales commissions to boost sales volumes.
What is the cost of goods sold primarily driven by for a given period? -
ANSWER - Sales volume.
Why would an increase in the company's days in A/P produce cash for a
business? - ANSWER - The company is 'stretching its payables' and
deferring a cash outflow.
pg. 2
,Page 3 of 60
Why would an increase in a businesses' days in inventory consume
cash? - ANSWER - The business is expending cash to build up its
inventory levels.
What is the Q2 2022 quarterly revenue amount implied by the accounts
receivable balance and days in A/R? - ANSWER - $26.8 million.
What is the Q3 2021 quarterly COGS amount implied by the inventory?
- ANSWER - $12.1 million.
A real-estate holdings company has the following fixed asset
detail:Buildings: $25.0 Million; Useful Life 20-years.Land: $5.0
Million.Assuming straight-line depreciation, what would the company's
total annual depreciation expense be? - ANSWER - $1.25 million.
Having a very successful year, the real-estate holdings company
manages to acquire a new property on July 1, 2021. The company has a
fiscal year-end of July 31. The details on the building and land for the
new property are as follows:BuildingCost basis - $40.0 million.Useful
life - 30 years.LandCost basis - $10.0 million.What would the
accounting depreciation expense be for the fiscal year ended July 31,
2021? - ANSWER - $111 thousand.
What does the principle of Autonomy emphasize in a business ethics
context? - ANSWER - Using knowledge responsibly while respecting
privacy and confidentiality
pg. 3
, Page 4 of 60
What is a symptom of a weak ethical culture within an organization? -
ANSWER - Employees rationalize behavior with phrases like "everyone
does it."
Which factor most directly contributes to shaping an organization's
ethical culture? - ANSWER - The hierarchy, starting with leadership's
behavior and expectations
In the 10-step ethical decision-making framework introduced in this
course, what is the first step when faced with an ethical dilemma? -
ANSWER - Gather the facts and identify the stakeholders involved
A financial advisor recommends a low-cost investment that aligns with
the client's goals rather than one with a higher commission. Which
ethical approach does this demonstrate? - ANSWER - Virtue Approach
According to the utilitarian approach to ethical decision-making, what
should be prioritized? - ANSWER - Actions that provide the greatest
good for the greatest number
The debt to tangible net worth ratio is calculated as follows: - ANSWER
- Interest Bearing Liabilities / (Equity - Intangible Assets)
If the total assets to equity ratio of a company is increasing, it is possible
that: - ANSWER - The company is increasing the use of debt and getting
higher financial leverage
pg. 4
