CFI FMVA EXAM QUESTIONS WITH

CFI FMVA EXAM

WITH ACTUAL

SOLUTIONS!!

Evatee9/10/24CFI FMVA 1 / 4

CFI FMVA EXAM QUESTIONS WITH

ACTUAL SOLUTIONS!!

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. 2 / 4

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 3 / 4

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.

• / 4