FMVA FINAL EXAM: QUE STIONS

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FMVA FINAL EXAM: QUE STIONS

WITH SOLUTIONS (SOLV ED)

Question : Where would 'accounts payable' most likely

appear on a set of financial statements?

CORRECT ANSWER: On the balance sheet under

'current liabilities'

Question : Which is not a type of note found in a set of

financial statements?

CORRECT ANSWER: Significant internal controls

Question : What is the correct syntax for the

=YEARFRAC function?

CORRECT ANSWER:

=YEARFRAC(start_date,end_date,[basis])

Question : Which of the following is NOT a form of

subordinated debt?

CORRECT ANSWER: Revolver

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Question : Which of the following is not a function of

public accounting firms?

CORRECT ANSWER: Due dilligence

Question : Which ratio would you use to determine the

profitability of the goods sold by a company?

CORRECT ANSWER: Gross Profit Margin

Question : Horizontal analysis allows us to analyze

performance over:

CORRECT ANSWER: Time

Question : If a company wanted to finance the purchase

of equipment without diluting shareholders equity, which of the following operation could it consider?

CORRECT ANSWER: Issuing convertible bonds

Question : When calculating the quick ratio or "acid test"

which current asset or liability is omitted?

CORRECT ANSWER: Inventory

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Question : Using the PEST analysis, which of the

following should a company like Apple Inc. worry about the most?

CORRECT ANSWER: Technological forecasting and

trends

Question : Identify which of the following is NOT a good

way for managers to use a budget.

CORRECT ANSWER: Managers can use budgets alone

to estimate how well they perform over a period of time

Question : Which of the following components is not

necessary to have in every master budget?

CORRECT ANSWER: Direct material purchase budget

Question : What does variable cost with economies of

scale mean?

CORRECT ANSWER: The higher the volume of

output, the less it costs to produce one extra unit

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Question : Before protecting a worksheet to avoid people

from editing the formulas, you must

CORRECT ANSWER: unlock the input cells

Question : The annual accounts receivable is 3,000; the

annual sales 40,000, and the gross profit margin is 40%.The receivable days estimated from the data above is

_____.

CORRECT ANSWER: 27.4

Question : The PP&E gross book value at the start of the

month is 60,000, and the CAPEX of the month is 12,000.The accumulated depreciation at the start of the month is 25,000; the depreciation expense of the month is 750. The net book value of PP&E calculated from the data above is

_____.

CORRECT ANSWER: 46,250

Question : Simple interest is important framework to start

learning about Time value of MoneyIf you are going to