Free IMANET CMA Exam Questions

Become IMANET Certified with updated CMA exam questions and correct answers

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Total 1336 Questions | Updated On: Aug 20, 2026

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Question 1

Which one of the following financial instruments generally provides the largest source of short-term credit for small firms?

A : tallment loans.

B : mmercial paper.

C : ade credit.

D : Bankers’ acceptances.

Answer: C

Question 2

In planning and controlling capital expenditures, the most logical sequence is to begin with?

A : alyzing capital addition proposals.

B : king capital expenditure decision.

C : alyzing and evaluating all promising alternatives.

D : Identifying capital addition projects and other capital needs.

Answer: D

Question 3

In general, it is more expensive for a company to finance with equity capital than with debt capital

because

A : ng-term bonds have a maturity date and must therefore be repaid in the future.

B : vestors are exposed to greater risk with equity capital.

C : interest on debt is a legal obligation

D : uity capital is in greater demand than debt capital

Answer: B

Question 4

Union Electric Company must clean up the water released from its generating plant. The company’s

cost of capital is 12 percent for average risk projects, and that rate is normally adjusted up or down

by 2 percentage points for high- and low- risk projects. Clean-Up Plan

A. which is of average risk, has an initial cost of $10 million, and its operating cost will be $1 million

per year for its 10-year life. Plan B, which is a high-risk project, has an initial cost of $5 million, and its

annual operating cost over Years 1 to 10 will be $2 million. What is the approximate PV of costs for

the better project?

A : $15,432,000

B : $15,650,000

C : $16,300,000

D : $17,290,000

Answer: B

Question 5

Which of the following is not a category of relevant cash flows’?

A : nual net cash flows

B : oject termination cash flows.

C : cremental cash flows.

D : t initial investment.

Answer: C

Page: 1 / 268

Total 1336 Questions | Updated On: Aug 20, 2026

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