FMVA EXAM QUESTIONS &
ACCURATE COMPLETE SOLUTIONS
Accounts Receivable - correct answer ✔✔Amounts to be received in the future due to the sale
of goods or services
Income Taxes Payable - correct answer ✔✔Corporate taxes for the period that must be remitted
to government.
Long-term Debt - correct answer ✔✔Borrowing for business - one or multiple loans where term
is longer than 12 months; non-current liability
Contingencies - correct answer ✔✔A potential future liability that the company can reasonably
estimate (eg, from a pending lawsuit)
Property, Plant, and Equipment - correct answer ✔✔Physical assets used to generate income
over a period of time greater than 12 months. Include things such as buildings, furniture,
computers, vehicles, manufacturing equipment.
Inventory - correct answer ✔✔Goods either purchased or produced for sale to customers.
Current portion of capital lease obligation - correct answer ✔✔The amount owing over the next
12 months for capital lease payments.
Cash and Equivalents - correct answer ✔✔Cash or items that act like cash (eg, short term
money market funds) that a business holds.
ACCURATE COMPLETE SOLUTIONS
Accounts Receivable - correct answer ✔✔Amounts to be received in the future due to the sale
of goods or services
Income Taxes Payable - correct answer ✔✔Corporate taxes for the period that must be remitted
to government.
Long-term Debt - correct answer ✔✔Borrowing for business - one or multiple loans where term
is longer than 12 months; non-current liability
Contingencies - correct answer ✔✔A potential future liability that the company can reasonably
estimate (eg, from a pending lawsuit)
Property, Plant, and Equipment - correct answer ✔✔Physical assets used to generate income
over a period of time greater than 12 months. Include things such as buildings, furniture,
computers, vehicles, manufacturing equipment.
Inventory - correct answer ✔✔Goods either purchased or produced for sale to customers.
Current portion of capital lease obligation - correct answer ✔✔The amount owing over the next
12 months for capital lease payments.
Cash and Equivalents - correct answer ✔✔Cash or items that act like cash (eg, short term
money market funds) that a business holds.
