CFI FMVA Final Exam Comprehensive
Prep (2025/2026)
Part 1: Financial Analysis & Accounting (The
Foundation)
Q1. A company capitalized $50,000 of R&D costs that should have been expensed. What
is the impact on the current year’s financial statements?
A) Understated Net Income; Understated Assets
B) Overstated Net Income; Overstated Assets
C) Overstated Net Income; Understated Assets
D) No impact on Net Income; Overstated Assets
Q2. Which of the following is a "Contra-Asset" account?
A) Accounts Payable
B) Accumulated Depreciation
C) Deferred Revenue
D) Treasury Stock
Q3. If a company’s Inventory Turnover ratio increases while its Gross Margin remains
constant, what is the most likely implication?
A) The company is holding more safety stock.
B) The company is managing its supply chain more efficiently.
C) Sales are declining faster than inventory.
D) The company is facing a liquidity crisis.
Part 2: Advanced Modeling & Excel (The Engine)
Q4. In a circular model (e.g., Interest Expense linked to Average Debt), what is the
"Clean" way to resolve a #REF! error if the circle breaks?
A) Delete the formula and re-type it.
B) Use a "Circuit Breaker" (an IF statement linked to a manual Boolean toggle).
C) Turn off "Iterative Calculations" in Excel settings.
D) Hardcode the interest expense for one period.
Q5. You need to pull the "Bear Case" revenue growth rate from a table where "Case
Name" is the column header and "Year" is the row label. Which formula is most
flexible?
A) =VLOOKUP(Year, Table, Column_Index, FALSE)
Prep (2025/2026)
Part 1: Financial Analysis & Accounting (The
Foundation)
Q1. A company capitalized $50,000 of R&D costs that should have been expensed. What
is the impact on the current year’s financial statements?
A) Understated Net Income; Understated Assets
B) Overstated Net Income; Overstated Assets
C) Overstated Net Income; Understated Assets
D) No impact on Net Income; Overstated Assets
Q2. Which of the following is a "Contra-Asset" account?
A) Accounts Payable
B) Accumulated Depreciation
C) Deferred Revenue
D) Treasury Stock
Q3. If a company’s Inventory Turnover ratio increases while its Gross Margin remains
constant, what is the most likely implication?
A) The company is holding more safety stock.
B) The company is managing its supply chain more efficiently.
C) Sales are declining faster than inventory.
D) The company is facing a liquidity crisis.
Part 2: Advanced Modeling & Excel (The Engine)
Q4. In a circular model (e.g., Interest Expense linked to Average Debt), what is the
"Clean" way to resolve a #REF! error if the circle breaks?
A) Delete the formula and re-type it.
B) Use a "Circuit Breaker" (an IF statement linked to a manual Boolean toggle).
C) Turn off "Iterative Calculations" in Excel settings.
D) Hardcode the interest expense for one period.
Q5. You need to pull the "Bear Case" revenue growth rate from a table where "Case
Name" is the column header and "Year" is the row label. Which formula is most
flexible?
A) =VLOOKUP(Year, Table, Column_Index, FALSE)
