Fmva Cti Exam With Correct Answers #15
Accounts Receivable - correct answer Amounts to be received in the future due to the
sale of goods or services
Income Taxes Payable - correct answer Corporate taxes for the period that must be
remitted to government.
Long-term Debt - correct answer Borrowing for business - one or multiple loans where
term is longer than 12 months; non-current liability
Contingencies - correct answer A potential future liability that the company can
reasonably estimate (eg, from a pending lawsuit)
Property, Plant, and Equipment - correct answer Physical assets used to generate
income over a period of time greater than 12 months. Include things such as buildings,
furniture, computers, vehicles, manufacturing equipment.
Inventory - correct answer Goods either purchased or produced for sale to customers.
Current portion of capital lease obligation - correct answer The amount owing over the
next 12 months for capital lease payments.
Cash and Equivalents - correct answer Cash or items that act like cash (eg, short term
money market funds) that a business holds.
Common Shares/Stock - correct answer Shares held by investors in the company.
These shares allow for voting rights and participation in profits.
Current portion of long-term debt - correct answer The amount of any loan(s)
repayments due within the next 12 month period.
Goodwill - correct answer The premium paid on the acquisition of another business.
Deferred Income Tax Assets - correct answer A timing difference due to the difference
between accounting income and taxable income. Difference will reverse in the next
reporting period/ next 12 months.
Unearned Revenue - correct answer Revenues that have been collected from
customers but have not yet been earned by the company (eg, performance of service
has not yet occurred, or product has not yet been delivered).
Accounts Payable - correct answer Supplier invoices that relate to the current reporting
period but that have not yet been paid.
Accounts Receivable - correct answer Amounts to be received in the future due to the
sale of goods or services
Income Taxes Payable - correct answer Corporate taxes for the period that must be
remitted to government.
Long-term Debt - correct answer Borrowing for business - one or multiple loans where
term is longer than 12 months; non-current liability
Contingencies - correct answer A potential future liability that the company can
reasonably estimate (eg, from a pending lawsuit)
Property, Plant, and Equipment - correct answer Physical assets used to generate
income over a period of time greater than 12 months. Include things such as buildings,
furniture, computers, vehicles, manufacturing equipment.
Inventory - correct answer Goods either purchased or produced for sale to customers.
Current portion of capital lease obligation - correct answer The amount owing over the
next 12 months for capital lease payments.
Cash and Equivalents - correct answer Cash or items that act like cash (eg, short term
money market funds) that a business holds.
Common Shares/Stock - correct answer Shares held by investors in the company.
These shares allow for voting rights and participation in profits.
Current portion of long-term debt - correct answer The amount of any loan(s)
repayments due within the next 12 month period.
Goodwill - correct answer The premium paid on the acquisition of another business.
Deferred Income Tax Assets - correct answer A timing difference due to the difference
between accounting income and taxable income. Difference will reverse in the next
reporting period/ next 12 months.
Unearned Revenue - correct answer Revenues that have been collected from
customers but have not yet been earned by the company (eg, performance of service
has not yet occurred, or product has not yet been delivered).
Accounts Payable - correct answer Supplier invoices that relate to the current reporting
period but that have not yet been paid.
