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CFI FMVA-4 Exam Quizzes with Correct Answers
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CFI FMVA-4 Exam Quizzes with Correct Answers
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CFI FMVA-4 Exam Quizzes with CorrectAnswers
On March 1st, Mr. Smithe signed up for a fitness program at Fit Co. and paid $960 for
the entire program upfront. The program includes a total of 12 sessions and two
sessions are delivered each month. How much revenue from Mr. Smithe should Fit Co.
recognize at the end of March? - ✔✔$160
Which of the following characteristics does not enhance the usefulness of financial
information? - ✔✔Relevance
Identify the statement that is most accurate. - ✔✔Financial information that has
confirmatory value provides feedback that either confirms or changes previous
evaluations.
Which of the following is not a correct description of how an operating lease is
recognized on the financial statements? - ✔✔The amortization expense of the right-
of-use asset is calculated using the straight-line depreciation method over the lease
term.
Company Inc. enters into a 10-year finance lease at the beginning of 2021 for a total of
$250,000. The annual lease payment is $25,000 (payable at the end of each year) and
the rate implicit in the lease is 5%. No initial direct costs are incurred. How much
interest expense should be recognized in 2021? - ✔✔$9,652
Which of the following statements about income taxes is not correct? -
✔✔Deductible temporary differences give rise to deferred tax liabilities, meaning
that more tax is payable in the future.
,Generally arise when there are differences that result in current accounting income
being greater than taxable income - ✔✔Taxable Temporary Differences
Give rise to deferred tax assets - ✔✔Deductible Temporary Differences
Generally arise when the tax base of the assets is greater than the carrying amount -
✔✔Deductible Temporary Differences
Arise when the tax base of the liabilities is greater than the carrying amount -
✔✔Taxable Temporary Differences
Arise when the carrying amount of the liabilities is greater than the tax base -
✔✔Deductible Temporary Differences
Give rise to deferred tax liabilities - ✔✔Taxable Temporary Differences
Calculate the deferred tax liability given the following items incurred in 2020 by
Company B. Bonuses are tax deductible only in the year in which they are paid. -
✔✔$372
Company Co. has 1,000 employees and it decides to grant each of the employees 200
share options as part of its new rewards plan. The options are exercisable over 5 years
and subject only to the condition that the company's stock price must be at least 30%
higher than its original issue price. Company Co.'s share-based payments are subject to:
- ✔✔Non-vesting condition
Company A has 800 employees, and it decides to grant each of the employees 50 share
options as part of its new rewards plan. The options are exercisable over 5 years and
subject to a 3-year service condition. The fair value of each option at the grant date is
, $16. The company estimates that 80% of its employees will meet the service condition
required for receiving the options. Calculate the total share-based payment expense for
Company A assuming that 80% of the employees actually meet the service condition. -
✔✔$512,000
Which of the following is not a required criterion for a transaction to be considered a
business combination? - ✔✔Presence of outputs
Which of the following statements regarding the accounting for business combinations
is false? - ✔✔Goodwill is the difference between the consideration transferred by the
acquirer to the acquiree and the fair value of identifiable assets acquired.
Debt issuance costs are: - ✔✔Amortized over the term of the related debt liability
Which of the following is NOT a best practice for financial model inputs? - ✔✔Protect
inputs by locking input cells
Complex financial models are all of the following EXCEPT: - ✔✔They are easy to
follow and audit
Forecast the 2019 Cost of goods sold on the previous year's number and the
assumptions - ✔✔32,400
Forecast the accounts receivable for Company XYZ using the following annual
information.
Receivable days assumption = 55 days
Payable days assumption = 69 days
Forecasted revenue = $263,500
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