Free IMANET FMAA Exam Questions

Become IMANET Certified with updated FMAA exam questions and correct answers

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Total 162 Questions | Updated On: Apr 29, 2026

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Question 1

Which of the following statements is a responsibility for an IMA member regarding the "Integrity" standard of ethical conduct?

A : To refrain from using confidential information for unethical or illegal advantage.

B : Perform professional duties in accordance with relevant laws, regulations, and technical standards.

C : Provide all relevant information that could reasonably be expected to influence an intended user's understanding of the reports,analyses, or recommendations.

D : Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

Answer: D

Question 2

A company decided to implement life-cycle costing in order to achieve cost leadership in its industry. An accountant prepared a draft presentation explaining that life-cycle costing covers costs from the production stage to the sales and service stage of the product. After reviewing the draft, her supervisor asked the accountant to include a statement that life-cycle costing

A : capitalizes upstream product-related costs to highlight their value added.

B : also covers upstream preproduction costs since those lock in most downstream costs.

C : identifies the benefits of learning that reduce product costs over the product life cycle.

D : analyzes activities to help improve the value of products over their life cycle.

Answer: B

Question 3

Mark Tian, a staff accountant, becomes aware of an off-balance sheet bank account where funds have been diverted with offsetting creditsapproved by his immediate supervisor. His immediate supervisor refuses to discuss it and suggests Tian forget about it. Which one of thefollowing should be Tian’s next course of action in this circumstance?

A : Communicate his concerns confidentially to the company’s independent auditor.

B : Communicate his concerns confidentially to the company’s external legal counsel.

C : Put his concerns in writing to the immediate supervisor and copy the company’s independent auditor.

D : Discuss his concerns with the level of management above the immediate supervisor.

Answer: D

Question 4

A company has net sales of $4,000,000, operating income of $1,200,000, and net income of $1,000,000. Average total assets are $9,000,000 and average total equity is $7,000,000. What is the company’s return on equity (ROE) and return on assets (ROA)?

A : ROE is greater than 12%, and ROA is less than 12%.

B : ROE is less than 12%, and ROA is greater than 12%.

C : ROE and ROA are both greater than 12%.

D : ROE and ROA are both less than 12%.

Answer: A

Question 5

Which one of the following is the best reason for using variable costing?

A : Variable costing is acceptable for income tax reporting purposes.

B : All costs are variable in the long term.

C : Fixed factory overhead is more closely related to the capacity to produce than to the production of specific units.

D : Variable costing usually results in higher operating income than if a company uses absorption costing.

Answer: C

Page: 1 / 33

Total 162 Questions | Updated On: Apr 29, 2026

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