QZ15: MCQ #CMA Part One

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One of a firm’s assets is 270-day commercial paper that the firm intends to hold to maturity. One of its liabilities is a short position in a common stock, which the firm holds for trading purposes.
How should this asset and this liability be classified on the firm’s balance sheet?
A. Commercial paper should be classified as current and short position should be classified as non-current.
B. Short position should be classified as current and commercial paper should be classified as non-current.
C. Both should be classified as current.
D. Both should be classified as non-current.

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The Correct Answer
C
The Explanation
The commercial paper should be classified as current because it will be converted to cash in less than a year. A liability that is held primarily for trading purposes, such as this short position, should also be classified as current.

QZ14: MCQ #CMA Part One

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Which of the following characteristics are required for recognition of a balance sheet asset?

A.The firm can sell this asset.

B.When the asset is obtained at a cost.

D.The asset is tangible.

E.Future economic benefits to the firm are probably.

The Correct Answer

D

The Explanation

An asset is recognized on the balance sheet only if it is probable that it will provide future economic benefits . Assets can be tangible or intangible. In some cases, assets are acquired without cost, but will be reported to the extent that they will provide future economic benefits, and thus have value.

QZ12: MCQ #CMA Part One

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……… useing financial reporting to negotiate wages & fringe benefits.

A.Shareholder

B.Suppliers

C.Regulatory agencies

D.Employee

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The Correct Answer

D

The Explanation

the salary policy of employees according to negotiation such areas as pay, fringe benefits (such as Medical insurance and retirement plans) , work schedules; that based on the employees ’contribution to the firm’s performance

QZ11: MCQ #CMA Part One

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Project the firm’s sales. Most other forecasts (budgets) follow the sales forecast. The statistical methods of forecasting sales except

A.Time-series analysis

B.Exponential smoothing

C.Regression analysis

D.Previous experience

The Correct Answer

D

The Explanation

Previous experience don’t classified as a statistical method of forecasting sales

QZ10: MCQ #CMA Part One

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Next; External stakeholder except

A.Government agencies

B. Creditors

C. board of directors (BOD)

D. Lenders

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The Correct Answer

C

The Explanation

Users of Financial Statements

 External Users Internal Users Direct Interests Indirect Interests

Management

 board of directors(BOD)

Employees

manager

directors

Owner

investor

 Shareholder

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potential investors

Suppliers

Creditors

bondholder

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Regulatory agencies

Government agencies

 Stock markets

 financial advisors

 √    

√

 

QZ9: MCQ #CMA Part One

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The role of CMA’S holder in their firms.

A. Decision making

B. Decision support

C. Follow-up

D. all the above

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The correct answer

B. Decision support

 

Explanation

CMA’S holder use a quantitative methods to determine the benefits, adaptations and risks for decision , and this is presented to the decision maker, who may be the owners, board of directors, or executive director.

QZ8: MCQ #CMA Part One

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That are present obligation n result from past event to predicted future benefits for business unit or by other words the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events.
A. Liabilities
B. Assets
C. Shareholders’ equity
D. Revenue

 

 

 

 

 

The Correct Answer
A

QZ6: MCQ #CMA Part One

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That are any resource controlled by the entity result from past event predicted future economic interest for the business unit. Those can classification to tangible or intangible to add economic value for the business unit.
A. Liabilities
B. Assets
C. Shareholders’ equity
D. Revenue

 

 

 

 

 

 

 

 

 

The Correct Answer
B