CFI FMVA 2025/2026 BANK
ACCURATE CURRENTLY TESTING
EXAM WITH ACTUAL QUESTIONS
AND DETAILED ANSWERS WITH A
STUDY GUIDE / EXPERT VERIFIED
FOR GURANTEED PASS
Income statement accounting ,,answer,,,..Accrual - revenues & costs
recorded as a business earns or incurs them, not as it receives and pays
money
It includes them in the relevant period's income statement and matches
them as closely as possible
CF makes no difference whatsoever - IS where sale happens
=> How do you decide when sale happens? RECOGNIZE REV UPON
DELIVERY OF GOOD/SERVICE PERFORMED
Why are profits and cash flow not the same thing? ,,answer,,,..Accounting
differences
The idea of matching over time ,,answer,,,..
CFS Accounting ,,answer,,,..Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
Cash accounting method ,,answer,,,..record income and expenditures at
the time the money changes hands
,Cash accounting method ,,answer,,,..An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
Accrual Accounting ,,answer,,,..recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or
not.
Accrual Basis Accounting ,,answer,,,..reporting income when it is earned
and expenses when they are incurred
Accrual Basis Accounting ,,answer,,,..the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
Accrual Basis Accounting ,,answer,,,..Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
accrued expenses ,,answer,,,..expenses incurred in one fiscal period but
not paid until a later fiscal period
accrued expenses ,,answer,,,..expenses incurred but not yet paid in cash
or recorded
Cash flow from operating activities ,,answer,,,..The net amount of cash
provided from operating activities.
cash flow from financing activities ,,answer,,,..
The idea of matching over time ,,answer,,,..
,CFS Accounting ,,answer,,,..Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
Cash accounting method ,,answer,,,..record income and expenditures at
the time the money changes hands
Cash accounting method ,,answer,,,..An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
Accrual Accounting ,,answer,,,..recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or
not.
Accrual Basis Accounting ,,answer,,,..reporting income when it is earned
and expenses when they are incurred
Accrual Basis Accounting ,,answer,,,..the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
Accrual Basis Accounting ,,answer,,,..Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
accrued expenses ,,answer,,,..expenses incurred in one fiscal period but
not paid until a later fiscal period
, accrued expenses ,,answer,,,..expenses incurred but not yet paid in cash
or recorded
Cash flow from operating activities ,,answer,,,..The net amount of cash
provided from operating activities.
cash flow from financing activities ,,answer,,,..The section of the
statement of cash flows that reports cash flows from transactions
affecting the equity and debt of the business.
cash flow from financing activities ,,answer,,,..items related to debt,
dividends, and issuing or repurchasing shares
cash flow from investing activities ,,answer,,,..The section of the
statement of cash flows that reports cash flows from transactions
affecting investments in noncurrent assets.
cash flow from investing activities ,,answer,,,..involves any cash in or out
of the company due to investment in or disposal of fixed assets.
Contributed surplus ,,answer,,,..Amount paid for shares in excess of their
par value
Contributed surplus ,,answer,,,..money that has been invested in the firm
by outside parties
Contributed surplus ,,answer,,,..A source of contributed capital that can
result from certain types of equity transactions, including the
reacquisition of shares.
Straightline depreciation ,,answer,,,..Allocates equal amounts of plant
assets net cost to depreciation during its useful life.
ACCURATE CURRENTLY TESTING
EXAM WITH ACTUAL QUESTIONS
AND DETAILED ANSWERS WITH A
STUDY GUIDE / EXPERT VERIFIED
FOR GURANTEED PASS
Income statement accounting ,,answer,,,..Accrual - revenues & costs
recorded as a business earns or incurs them, not as it receives and pays
money
It includes them in the relevant period's income statement and matches
them as closely as possible
CF makes no difference whatsoever - IS where sale happens
=> How do you decide when sale happens? RECOGNIZE REV UPON
DELIVERY OF GOOD/SERVICE PERFORMED
Why are profits and cash flow not the same thing? ,,answer,,,..Accounting
differences
The idea of matching over time ,,answer,,,..
CFS Accounting ,,answer,,,..Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
Cash accounting method ,,answer,,,..record income and expenditures at
the time the money changes hands
,Cash accounting method ,,answer,,,..An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
Accrual Accounting ,,answer,,,..recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or
not.
Accrual Basis Accounting ,,answer,,,..reporting income when it is earned
and expenses when they are incurred
Accrual Basis Accounting ,,answer,,,..the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
Accrual Basis Accounting ,,answer,,,..Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
accrued expenses ,,answer,,,..expenses incurred in one fiscal period but
not paid until a later fiscal period
accrued expenses ,,answer,,,..expenses incurred but not yet paid in cash
or recorded
Cash flow from operating activities ,,answer,,,..The net amount of cash
provided from operating activities.
cash flow from financing activities ,,answer,,,..
The idea of matching over time ,,answer,,,..
,CFS Accounting ,,answer,,,..Only records transactions when cash is
received
VS
IS records ALL revenues earned, whether in cash or accrued
Cash accounting method ,,answer,,,..record income and expenditures at
the time the money changes hands
Cash accounting method ,,answer,,,..An accounting method in which
income and expenditures are recorded at the time the money changes
hands.
Accrual Accounting ,,answer,,,..recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or
not.
Accrual Basis Accounting ,,answer,,,..reporting income when it is earned
and expenses when they are incurred
Accrual Basis Accounting ,,answer,,,..the method of accounting that
recognizes revenue when it is earned and matches expenses to the
revenues they helped produce
Accrual Basis Accounting ,,answer,,,..Accounting basis in which
companies record, in the periods in which the events occur, transactions
that change a company's financial statements, even if cash was not
exchanged.
accrued expenses ,,answer,,,..expenses incurred in one fiscal period but
not paid until a later fiscal period
, accrued expenses ,,answer,,,..expenses incurred but not yet paid in cash
or recorded
Cash flow from operating activities ,,answer,,,..The net amount of cash
provided from operating activities.
cash flow from financing activities ,,answer,,,..The section of the
statement of cash flows that reports cash flows from transactions
affecting the equity and debt of the business.
cash flow from financing activities ,,answer,,,..items related to debt,
dividends, and issuing or repurchasing shares
cash flow from investing activities ,,answer,,,..The section of the
statement of cash flows that reports cash flows from transactions
affecting investments in noncurrent assets.
cash flow from investing activities ,,answer,,,..involves any cash in or out
of the company due to investment in or disposal of fixed assets.
Contributed surplus ,,answer,,,..Amount paid for shares in excess of their
par value
Contributed surplus ,,answer,,,..money that has been invested in the firm
by outside parties
Contributed surplus ,,answer,,,..A source of contributed capital that can
result from certain types of equity transactions, including the
reacquisition of shares.
Straightline depreciation ,,answer,,,..Allocates equal amounts of plant
assets net cost to depreciation during its useful life.
