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: Jun 03, 2025

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Question 1

An example of secured short-term financing is

A : mmercial paper.

B : warehouse receipt.

C : revolving credit agreement

D : ne of credit

Answer: B

Question 2

A manufacturer has been approached by a new customer who wants to place a one-time order for a

component similar to one that the manufacturer makes for another customer. Existing sales will not

be affected by acceptance of this order. The manufacturer has a policy of setting its targeted selling

price at 60% over full manufacturing cost. The manufacturing costs and the targeted selling price for

the existing product are presented as follows.

The manufacturer has excess capacity to produce the quantity of the component desired by the new

customer. The direct materials used in the component for the new customer would cost the

manufacturer $0.25 less than the component currently being made. The variable selling expenses

(packaging and shipping) would be the same, or $0.90 per unit. Under these circumstances, the

minimum unit price at which the manufacturer would accept the special order is one exceeding.

A : $8.35

B : $9.25

C : $14.00

D : $14.80

Answer: B

Question 3

The internal rate of return for a project can be determined

A : the internal rate of return is greater than the firm’s cost of capital.

B : ly if the project cash flows are constant.

C : finding the discount rate that yields a net present value of zero for the project.

D : subtracting the firm’s cost of capital from the project’s profit ability index.

Answer: C

Question 4

Austin Manufacturing, which is subject to a 40% income tax rate, had the following operating data

for the period just ended.

Management plans to improve the quality of its sole product by (1) replacing a component that costs

$3.50 with a higher-grade unit that costs $5.50, and (2) acquiring a $180,000 packing machine. Austin

will depreciate the machine over a 10-year life with no estimated salvage value by the straight-line

method of depreciation. If the company wants to earn after-tax income of $172,800 in the upcoming

period, it must sell

A : 19,300 units.

B : 21,3l6units.

C : 22,500 units.

D : 23,800 units.

Answer: C

Question 5

AA Company has purchased one share of QQ Company common stock and one put option. It has also

sold one call option. The options are written on one share of QQ Company common stock and have

the same maturity date and exercise price. The exercise price ($40) is the same as the share price.

Moreover, the options are exercisable only at the expiration date. Assuming the present value of the

exercise price is $36 and the value of the call is $4.50. the value of the put in accordance with the

put-call panty theorem is

A : $450

B : $400

C : $50

D : $0

Answer: C

Page: 1 / 268

Total 1336 Questions | Updated On: Jun 03, 2025

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