CFI FMVA EXAM QUESTIONS AND VERIFIED ANSWERS
2025(GRADED A+) DETAILED ANSWERS!!
Terms in this set (343)
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
Income statement accounting 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
Only records transactions when cash
CFS Accounting 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
An accounting method in which income and expenditures are
Cash accounting method
recorded at the time the money changes hands.
recording in each fiscal period applicable expenses, whether paid
Accrual Accounting
or not, and income earned, whether collected or not.
Accrual Basis Accounting reporting income when it is earned and expenses when they are incurred
the method of accounting that recognizes revenue when it is
Accrual Basis Accounting
earned and matches expenses to the revenues they helped
produce
, Accounting basis in which companies record, in the periods in which the
Accrual Basis Accounting 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
Only records transactions when cash
CFS Accounting 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
An accounting method in which income and expenditures are
Cash accounting method
recorded at the time the money changes hands.
recording in each fiscal period applicable expenses, whether paid
Accrual Accounting
or not, and income earned, whether collected or not.
Accrual Basis Accounting reporting income when it is earned and expenses when they are incurred
the method of accounting that recognizes revenue when it is
Accrual Basis Accounting
earned and matches expenses to the revenues they helped
produce
Accounting basis in which companies record, in the periods in which the
Accrual Basis Accounting 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.
The section of the statement of cash flows that reports cash
cash flow from financing activities
flows from transactions affecting the equity and debt of the
business.
cash flow from financing activities items related to debt, dividends, and issuing or repurchasing shares
The section of the statement of cash flows that reports cash
cash flow from investing activities
flows from transactions affecting investments in noncurrent
assets.
2025(GRADED A+) DETAILED ANSWERS!!
Terms in this set (343)
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
Income statement accounting 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
Only records transactions when cash
CFS Accounting 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
An accounting method in which income and expenditures are
Cash accounting method
recorded at the time the money changes hands.
recording in each fiscal period applicable expenses, whether paid
Accrual Accounting
or not, and income earned, whether collected or not.
Accrual Basis Accounting reporting income when it is earned and expenses when they are incurred
the method of accounting that recognizes revenue when it is
Accrual Basis Accounting
earned and matches expenses to the revenues they helped
produce
, Accounting basis in which companies record, in the periods in which the
Accrual Basis Accounting 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
Only records transactions when cash
CFS Accounting 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
An accounting method in which income and expenditures are
Cash accounting method
recorded at the time the money changes hands.
recording in each fiscal period applicable expenses, whether paid
Accrual Accounting
or not, and income earned, whether collected or not.
Accrual Basis Accounting reporting income when it is earned and expenses when they are incurred
the method of accounting that recognizes revenue when it is
Accrual Basis Accounting
earned and matches expenses to the revenues they helped
produce
Accounting basis in which companies record, in the periods in which the
Accrual Basis Accounting 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.
The section of the statement of cash flows that reports cash
cash flow from financing activities
flows from transactions affecting the equity and debt of the
business.
cash flow from financing activities items related to debt, dividends, and issuing or repurchasing shares
The section of the statement of cash flows that reports cash
cash flow from investing activities
flows from transactions affecting investments in noncurrent
assets.
