CMA Exam Preparation Package
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Questions and Answers

The financial statements included in the annual report to the shareholders are least useful to which one of the following?

  • Bankers preparing to lend money
  • Managers in charge of operating activities
  • Competing businesses (correct)
  • Stockbrokers
  • When a fixed asset is sold for less than book value, which one of the following will decrease?

  • Net working capital
  • Current ratio
  • Net profit (correct)
  • Total current assets
  • The effect this event would have on the company’s July 31 financial statements would be to

  • Cause no change in assets, liabilities, or income (correct)
  • Increase both assets and liabilities
  • Increase both assets and income
  • Increase liabilities and decrease income
  • All of the following are limitations to the information provided on the statement of financial position except:

    <p>Omission of items that are of financial value to the business such as the worth of the employees</p> Signup and view all the answers

    A statement of financial position provides a basis for all of the following except:

    <p>Determining profitability and assessing past performance</p> Signup and view all the answers

    An income statement could be used by an external investor for all of the following purposes except to:

    <p>Analyze the company’s performance compared to the budget</p> Signup and view all the answers

    The financial statement that provides a summary of the firm’s operations for a period of time is the:

    <p>Income statement</p> Signup and view all the answers

    When preparing its Statement of Cash Flows for the year, Bertram should show Cash Paid for Dividends as:

    <p>$15,000</p> Signup and view all the answers

    All of the following are elements of an income statement except:

    <p>Shareholders’ equity</p> Signup and view all the answers

    Study Notes

    CMA Exam Support Package

    • Covers CMA Part 1 and Part 2 exams
    • Contains practice questions for each section of the exams
    • Includes practice essays for both Part 1 and Part 2 of the exams
    • Provides answer keys for all the practice questions and essays
    • Offers additional practice materials for both Part 1 and Part 2 of the exams
    • Includes a suggested reading list for both parts of the exams
    • Offers definitions for relevant ratios for the exam
    • Provides test taking strategies
    • Lists candidate resources

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    Related Documents

    CMA Exam Support Package PDF

    Description

    This comprehensive CMA Exam Support Package is designed to help candidates prepare for both Part 1 and Part 2 of the CMA exams. It includes practice questions, essays, answer keys, and additional materials to enhance understanding and performance. With test-taking strategies and a suggested reading list, this package is the ultimate resource for CMA exam success.

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