CFM Cheat Sheet 2026

The 30 highest-yield CFM facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When evaluating a potential acquisition, the 'synergies' refer to: → Value created through combining two firms that exceeds the sum of their standalone values
2. Under absorption costing (full costing), which of the following is included in product cost? → Fixed manufacturing overhead
3. What is 'throughput costing' (also known as super-variable costing)? → A method that treats all costs except direct materials as period costs
4. What is the primary purpose of a 13-week cash flow forecast? → To provide short-term liquidity visibility for near-term cash management decisions
5. Which of the following is a benefit of centralized treasury management? → Netting of intercompany exposures, reducing external hedging costs
6. What does flexible budgeting allow? → Adjusting budgets dynamically
7. Under ASC 842, how are most operating leases now recorded on the lessee's balance sheet? → As a right-of-use asset and a corresponding lease liability
8. What is debt financing? → Borrowing money
9. Which strategic framework analyzes a company's Strengths, Weaknesses, Opportunities, and Threats? → SWOT Analysis
10. What consequence can result from failing to maintain proper regulatory compliance & ethics standards in Certified Finance Manager? → Loss of certification, legal penalties, and reputational damage
11. Which depreciation method results in higher depreciation expense in the early years of an asset's life? → Double declining balance
12. A company has EBITDA of $5 million and a net debt of $15 million. The industry EV/EBITDA multiple is 8x. What is the estimated equity value? → $25 million
13. What is the primary objective of treasury management? → Ensuring the company has sufficient liquidity while managing financial risks efficiently
14. A company reports $1,000,000 in revenue and a gross margin of 40%. What is the cost of goods sold? → $600,000
15. Which investment is typically used for short-term cash management due to its safety and liquidity? → Treasury bills (T-bills)
16. Which section of the cash flow statement includes collections from customers and payments to suppliers? → Operating activities
17. What is diversification in investment? → Spreading investments to reduce risk
18. What type of audit opinion indicates that financial statements are presented fairly in all material respects? → Unqualified (clean) opinion
19. What is a capital asset? → Long-term business asset
20. Which accounting principle requires expenses to be recorded in the same period as the revenues they helped generate? → Matching principle
21. Which financial concept describes the additional return investors demand for investing in equity over a risk-free asset? → Equity risk premium (ERP)
22. What is the internal rate of return (IRR)? → Discount rate with NPV zero
23. How does compliance reduce organizational risk? → By adhering to laws
24. What does the current ratio measure? → Short-term liquidity by comparing current assets to current liabilities
25. Which budgeting method starts from zero each period? → Zero-based budgeting
26. Accounts receivable factoring involves: → Selling receivables to a third party at a discount for immediate cash
27. Which of the following is NOT typically a component of working capital management? → Evaluating long-term capital expenditure projects
28. Which element is ESSENTIAL for an effective regulatory compliance & ethics program in Certified Finance Manager? → Regular audits and continuous monitoring processes
29. A company's cash conversion cycle (CCC) equals: → DSO + DIO - DPO
30. Which approach to capital allocation prioritizes projects based on their profitability index when capital is rationed? → Profitability Index ranking