CFI FMVA EXAM QUESTIONS AND VERIFIED
ANSWERS 2026 (GRADED A+) DETAILED
ANSWERS!!
Save
Terms in this set (343)
Income statement accounting 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 Accounting differences
the same thing?
The idea of matching over time
CFS Accounting Only records transactions when cash is received
VS
IS records ALL revenues earned, whether in cash
or accrued
, Cash accounting method record income and expenditures at the time the
money changes hands
Cash accounting method An accounting method in which income and
expenditures are recorded at the time the money
changes hands.
Accrual Accounting recording in each fiscal period applicable
expenses, whether paid or not, and income
earned, whether collected or not.
Accrual Basis Accounting reporting income when it is earned and expenses
when they are incurred
Accrual Basis Accounting the method of accounting that recognizes
revenue when it is earned and matches expenses
to the revenues they helped produce
Accrual Basis Accounting 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 expenses incurred in one fiscal period but not
paid until a later fiscal period
accrued expenses expenses incurred but not yet paid in cash or
recorded
Cash flow from operating activities The net amount of cash provided from operating
activities.
cash flow from financing activities
The idea of matching over time
ANSWERS 2026 (GRADED A+) DETAILED
ANSWERS!!
Save
Terms in this set (343)
Income statement accounting 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 Accounting differences
the same thing?
The idea of matching over time
CFS Accounting Only records transactions when cash is received
VS
IS records ALL revenues earned, whether in cash
or accrued
, Cash accounting method record income and expenditures at the time the
money changes hands
Cash accounting method An accounting method in which income and
expenditures are recorded at the time the money
changes hands.
Accrual Accounting recording in each fiscal period applicable
expenses, whether paid or not, and income
earned, whether collected or not.
Accrual Basis Accounting reporting income when it is earned and expenses
when they are incurred
Accrual Basis Accounting the method of accounting that recognizes
revenue when it is earned and matches expenses
to the revenues they helped produce
Accrual Basis Accounting 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 expenses incurred in one fiscal period but not
paid until a later fiscal period
accrued expenses expenses incurred but not yet paid in cash or
recorded
Cash flow from operating activities The net amount of cash provided from operating
activities.
cash flow from financing activities
The idea of matching over time
