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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
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
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
Next; use financial reporting to extending or withholding credit except
A. Creditors
B. Employee
C. Bondholder
D. Suppliers
The Correct Answer
B
The Explanation
Creditors, Bondholder and Suppliers using financial reporting to extending or withholding credit; but Employee using financial reporting to negotiate wages & fringe benefits.
……… useing financial reporting to negotiate wages & fringe benefits.
A. Shareholder
B. Suppliers
C. Regulatory agencies
D. Employee
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
………. uses financial reporting to evaluate the strengths and weaknesses addition, to evaluate the past performance to plan for the firm’s future.
A. Management
B. Suppliers
C. Regulatory agencies
D. Creditors
The Correct Answer
A
The Explanation
The firm’s management has the authority through the decisions of the administration to redistribute resources (assets) and tasks (employees) through the strategic plan and budgets according to their vision and mission under the SWOT analysis.
Next; External stakeholder except
A. Government agencies
B. Creditors
C. board of directors (BOD)
D. Lenders
The Correct Answer
C
Under GAAP, Financial statements can be prepared according to……..
The Correct Answer
B
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CMA Part 2
Strategic Financial Management
Examination Sample Questions
A framework for analyzing the relationship between risks and rates of return on securities, especially common stocks. It asserts that the risk elements that influence returns on securities include; inflation rate, industrial production, and the slope of the term structure of interest rates.
The Correct Answer
C
MCQ
When cash generated from firm’s operations and returned to financial managers
A.Cash reinvested in firms’ operations (retained earnings for reinvestment)
B.Cash returned to investors (interest payments or dividends)
C.A&B
D.Investment Cash Flows
The Correct Answer
C
MCQ
Framework for financial analysis includes
A.Analysis of the funds need of the firm
B.Analysis of financial condition and profitability of the firm
C.Analysis of the Business risk of the firm
D.all of the above
The Correct Answer
D
MCQ
Capital is allocated by financial markets by:
A.A lottery system between investment dealers.
B.Pricing securities based on their risk and expected future cash flows
C.By pricing risky securities higher than low-risk securities
D.By a government risk-rating system based on AAA for low risk and CCC for high risk
The Correct Answer
B
MCQ
In analyzing the firm, the investor should consider:
A.the risk inherent in the firm’s operation
B.the time patterns over which the firm’s earnings increase/decrease
C.the quality and reliability of the firm’s reported earnings
D.all of the above should be considered
The Correct Answer
D
MCQ
The ultimate measure of firm’s performance is:
A.the amount of the firm’s earnings
B.how the earnings are valued by the investor
C.the firm’s profit margin
D.return on the firm’s total assets
The Correct Answer
B
MCQ
Which one of the following is not a money market instrument?
A.a Treasury bond
B.a negotiable certificate of deposit
C.a Eurodollar account
D.a Treasury bill
The Correct Answer
A
MCQ
The market price of a share of common stock is determined by:
A.The board of directors of the firm.
B.The stock exchange on which the stock is listed.
C.The president of the company.
D.Individuals buying and selling the stock.
The Correct Answer
D
MCQ
Five areas that financial ratios concentrate on are:
A.liquidity, profitability, debt, efficiency, market related;
B.profitability, strategy, liquidity, auditing, share prices;
C.liquidity, current ratio, quick ratio, interest cover, dividend cover;
D.market related, share prices, dividend policy, debt policy, strategy.