✅ US CMA Part 1 – Fill-in-the-Blank Questions
Section A…..
A. External Financial Reporting (15%)
1.
Under absorption costing, fixed manufacturing overhead is allocated to units produced, and therefore units in ending inventory are valued (______ ).
Answer:
2.
A change in depreciation method is treated as a change in (_______ ) under US GAAP.
Answer:
3.
In contribution margin income statements, operating income changes in proportion to (________ ) changes.
Answer:
4.
Revenue is recognized when control of goods transfers to the customer under the (________ ) model.
Answer:
5.
A material prior-period error is corrected through (________ ) of beginning retained earnings.
Answer:
B. Planning, Budgeting & Forecasting (20%)
6.
In zero-based budgeting, every projected expense must be (________ ) from scratch.
Answer:
7.
The budget that drives all other budgets in the master budget is the (________ ) budget.
Answer:
8.
The technique that evaluates multiple possible future scenarios is called (________ ) analysis.
Answer:
9.
A forecast model where the newest data has more weight is (________ ) smoothing.
Answer:
10.
The budgeted cost of materials to be used in production is quantity × (________ ).
Answer:
C. Cost Management (15%)
11.
A cost that changes in direct proportion to activity is a (________ ) cost.
Answer:
12.
Conversion cost = direct labor + (________ ).
Answer:
13.
A cost that has already been incurred and cannot be altered is a (________ ) cost.
Answer:
14.
In ABC costing, the cost drivers chosen should have a high degree of (________ ).
Answer:
15.
The difference between actual overhead and applied overhead is called (________ ) overhead.
Answer:
16.
If actual activity exceeds the denominator level in standard costing, the fixed overhead rate is (________ ).
Answer:
D. Internal Controls (15%)
17.
The COSO framework defines internal control as a process designed to provide (________ ) assurance.
Answer:
18.
The control environment is primarily influenced by the (________ ) of the organization.
Answer:
19.
A detective control that assists in finding discrepancies in accounting is (________ ) reconciliation.
Answer:
20.
Authorization, recording, and custody should be separated to maintain proper (________ ).
Answer:
21.
The internal audit function must report functionally to the (________ ).
Answer:
22.
A business continuity plan ensures critical operations continue after a (________ ).
Answer:
E. Performance Management (20%)
23.
ROI = operating income ÷ (________ ).
Answer:
24.
Residual income = operating income − (required rate × (________ )).
Answer:
25.
The balanced scorecard includes financial, customer, internal process, and (________ ) perspectives.
Answer:
26.
A variance caused by paying more per hour than standard is the direct labor (________ ) variance.
Answer:
27.
A mix variance is caused by using inputs in (________ ) proportions than standard.
Answer:
28.
If a company reduces setup time, it is improving (________ ) cycle efficiency.
Answer:
F. Technology & Analytics (25%)
29.
The SDLC phase where the system’s needs are defined is the (________ ) phase.
Answer:
30.
A data warehouse stores (________ ) data used for strategic decision-making.
Answer:
31.
Data governance ensures data quality, security, and (________ ).
Answer:
32.
The primary defense against unauthorized network access is a (________ ).
Answer:
33.
RPA is primarily used to automate (________ ) tasks.
Answer
34.
Blockchain ensures data immutability through (________ ) linking.
Answer:
35.
A model that uses past data to predict future outcomes is (________ ) analytics.
Answer:
36.
The three V’s of big data include volume, velocity, and (________ ).
Answer:
37.
In descriptive analytics, data is summarized using dashboards and (________ ).
Answer:
38.
A control ensuring system changes are authorized and documented is a (________ ) control.
Answer:
G. Ethics & Internal Control Environment
39.
The IMA ethical standard violated when a manager hides information is (________ ).
Answer:
40.
An ethical dilemma should first be discussed with the individual’s (________ ) supervisor.
Answer:
Section B….
✅ 60 CHALLENGING FILL-IN-THE-BLANK QUESTIONS
A. External Financial Reporting (EFR)
1.
When fixed manufacturing overhead is expensed immediately rather than inventoried, the costing approach is (________ ).
Answer:
2.
Under ASC 606, the transaction price is allocated based on (________ ) selling prices.
Answer:
3.
A firm records impairment when carrying value exceeds (________ ) of an asset.
Answer:
4.
When inventory costs rise, FIFO produces (________ ) net income than LIFO.
Answer:
5.
Stock dividends cause a (________ ) reallocation in equity accounts without cash outflow.
Answer:
6.
Under IFRS, extraordinary items are (________ ) in financial reporting.
Answer:
7.
Capitalizing an expenditure increases future (________ ) expenses.
Answer
8.
The matching principle requires expenses to be recognized in the same period as related (________ ).
Answer:
9.
Treasury stock purchases (________ ) total equity.
Answer:
10.
If control does not transfer to the buyer, revenue must be (________ ).
Answer:
B. Planning, Budgeting & Forecasting
11.
The budget integrating all operational and financial components is the (________ ) budget.
Answer:
12.
A budget based on a single expected volume level is called a (________ ) budget.
Answer:
13.
A forecast that adjusts for recurring seasonal patterns uses (________ ) indices.
Answer:
14.
In rolling budgets, a new period is added whenever the current period is (________ ).
Answer:
15.
The variance caused solely by a change in activity volume is the (________ ) variance.
Answer:
16.
The short-term plan detailing expected cash inflows and outflows is the (________ ) budget.
Answer:
17.
The learning curve assumes that labor hours decline at a constant (________ ) rate.
Answer:
18.
Regression forecasting minimizes the sum of squared (________ ).
Answer:
19.
The key element that limits the organization’s operations is the (________ ) factor.
Answer:
20.
An intentional overestimation of expenses in budgets is an example of (________ ) slack.
Answer:
C. Cost Management
21.
The difference between actual cost and standard cost is called a (________ ).
Answer:
22.
Equivalent units measure partially completed goods in terms of (________ ) units.
Answer:
23.
Under-process costing, total costs are assigned to units using (________ ) costing.
Answer:
24.
A cost that does not change within the relevant range is (________ ).
Answer:
25.
Activity-based costing identifies resource consumption using (________ ) drivers.
Answer:
26.
Joint costs are allocated using physical measures or (________ ) value at split-off.
Answer:
27.
The cost-benefit analysis compares the incremental cost with the incremental (________ ).
Answer:
28.
A cost that changes in steps rather than continuously is a (________ ) cost.
Answer:
29.
The cost of goods manufactured schedule ends with (________ ) in process.
Answer:
30.
Absorption costing treats fixed manufacturing overhead as a (________ ) cost.
Answer:
D. Internal Controls
31.
An internal control weakness that allows fraud by collusion is a limitation of (________ ) controls.
Answer:
32.
Controls that ensure operations align with objectives are part of the (________ ) component of COSO.
Answer:
33.
Independence of internal auditors enhances the (________ ) of assurance.
Answer:
34.
A procedure that identifies unusual transactions after they occur is a (________ ) control.
Answer:
35.
COSO’s monitoring activities ensure controls continue to operate (________ ).
Answer:
36.
Periodic password resets represent a (________ ) control in IT.
Answer:
37.
Segregation of duties reduces the risk of errors and (________ ).
Answer:
38.
Limiting user access based on job roles follows the (________ ) principle.
Answer:
39.
ITGCs include access controls, change controls, and (________ ) management.
Answer:
40.
A written policy defining acceptable technology use is an (________ ) control.
Answer:
E. Performance Management
41.
A measure comparing profit to the capital invested is (________ ).
Answer:
42.
A performance measure that avoids suboptimization by using a minimum return rate is (________ ) income.
Answe
43.
The efficiency variance compares actual input quantity to (________ ) quantity.
Answer
44.
In the balanced scorecard, innovation metrics fall under the (________ ) perspective.
Answer:
45.
The throughput time metric is the sum of processing + waiting + inspection + (________ ) time.
Answer:
46.
A company focused on continuous improvement follows the philosophy of (________ ).
Answer:
47.
The rate at which output is produced per labor hour measures (________ ) productivity.
Answer:
48.
A variance caused by using a different proportion of materials than planned is a (________ ) variance.
Answer:
49.
Benchmarking compares a firm’s metrics to (________ ) performance.
Answer:
50.
A bottleneck limits production capacity and therefore restricts (________ ).
Answer:
F. Technology & Analytics
51.
ERP systems integrate data across functions to support a single (________ ) of truth.
Answer:
52.
Excel’s regression output identifies significance using the (________ ) value.
Answer:
53.
A data lake stores raw, unstructured data in its (________ ) form.
Answer:
54.
RPA is most effective for tasks that are repetitive and (________ ).
Answer:
55.
Cybersecurity uses encryption to convert plaintext into (________ ) text.
Answer:
56.
Anomaly detection in analytics is a common tool for identifying (________ ).
Answer:
57.
The primary goal of data governance is maintaining data quality and (________ ).
Answer:
58.
A sandbox environment allows testing without affecting (________ ) data.
Answer:
59.
A blockchain ledger is immutable because each block contains a cryptographic (________ ).
Answer:
60.
The SDLC phase where user training and system rollout occur is (________ ).
Answer:
✅ www.gmsisuccess.in
ANSWERS:
✅ US CMA Part 1 – Fill-in-the-Blank Questions
Section A…..
A. External Financial Reporting (15%)
1.
Under absorption costing, fixed manufacturing overhead is allocated to units produced, and therefore units in ending inventory are valued (______ ).
Answer: higher
2.
A change in depreciation method is treated as a change in (_______ ) under US GAAP.
Answer: accounting estimate
3.
In contribution margin income statements, operating income changes in proportion to (________ ) changes.
Answer: sales volume
4.
Revenue is recognized when control of goods transfers to the customer under the (________ ) model.
Answer: five-step revenue recognition
5.
A material prior-period error is corrected through (________ ) of beginning retained earnings.
Answer: retrospective restatement
B. Planning, Budgeting & Forecasting (20%)
6.
In zero-based budgeting, every projected expense must be (________ ) from scratch.
Answer: justified
7.
The budget that drives all other budgets in the master budget is the (________ ) budget.
Answer: sales
8.
The technique that evaluates multiple possible future scenarios is called (________ ) analysis.
Answer: sensitivity
9.
A forecast model where the newest data has more weight is (________ ) smoothing.
Answer: exponential
10.
The budgeted cost of materials to be used in production is quantity × (________ ).
Answer: standard price
C. Cost Management (15%)
11.
A cost that changes in direct proportion to activity is a (________ ) cost.
Answer: variable
12.
Conversion cost = direct labor + (________ ).
Answer: manufacturing overhead
13.
A cost that has already been incurred and cannot be altered is a (________ ) cost.
Answer: sunk
14.
In ABC costing, the cost drivers chosen should have a high degree of (________ ).
Answer: cause-and-effect
15.
The difference between actual overhead and applied overhead is called (________ ) overhead.
Answer: over- or under-applied
16.
If actual activity exceeds the denominator level in standard costing, the fixed overhead rate is (________ ).
Answer: lower
D. Internal Controls (15%)
17.
The COSO framework defines internal control as a process designed to provide (________ ) assurance.
Answer: reasonable
18.
The control environment is primarily influenced by the (________ ) of the organization.
Answer: tone at the top
19.
A detective control that assists in finding discrepancies in accounting is (________ ) reconciliation.
Answer: bank
20.
Authorization, recording, and custody should be separated to maintain proper (________ ).
Answer: segregation of duties
21.
The internal audit function must report functionally to the (________ ).
Answer: audit committee
22.
A business continuity plan ensures critical operations continue after a (________ ).
Answer: disruption
E. Performance Management (20%)
23.
ROI = operating income ÷ (________ ).
Answer: average operating assets
24.
Residual income = operating income − (required rate × (________ )).
Answer: investment
25.
The balanced scorecard includes financial, customer, internal process, and (________ ) perspectives.
Answer: learning and growth
26.
A variance caused by paying more per hour than standard is the direct labor (________ ) variance.
Answer: rate
27.
A mix variance is caused by using inputs in (________ ) proportions than standard.
Answer: different
28.
If a company reduces setup time, it is improving (________ ) cycle efficiency.
Answer: manufacturing
F. Technology & Analytics (25%)
29.
The SDLC phase where the system’s needs are defined is the (________ ) phase.
Answer: analysis
30.
A data warehouse stores (________ ) data used for strategic decision-making.
Answer: historical
31.
Data governance ensures data quality, security, and (________ ).
Answer: integrity
32.
The primary defense against unauthorized network access is a (________ ).
Answer: firewall
33.
RPA is primarily used to automate (________ ) tasks.
Answer: rule-based
34.
Blockchain ensures data immutability through (________ ) linking.
Answer: cryptographic
35.
A model that uses past data to predict future outcomes is (________ ) analytics.
Answer: predictive
36.
The three V’s of big data include volume, velocity, and (________ ).
Answer: variety
37.
In descriptive analytics, data is summarized using dashboards and (________ ).
Answer: visualizations
38.
A control ensuring system changes are authorized and documented is a (________ ) control.
Answer: change management
G. Ethics & Internal Control Environment
39.
The IMA ethical standard violated when a manager hides information is (________ ).
Answer: credibility
40.
An ethical dilemma should first be discussed with the individual’s (________ ) supervisor.
Answer: immediate
Section B….
✅ 60 CHALLENGING FILL-IN-THE-BLANK QUESTIONS
A. External Financial Reporting (EFR)
1.
When fixed manufacturing overhead is expensed immediately rather than inventoried, the costing approach is (________ ).
Answer: variable costing
2.
Under ASC 606, the transaction price is allocated based on (________ ) selling prices.
Answer: relative standalone
3.
A firm records impairment when carrying value exceeds (________ ) of an asset.
Answer: fair value
4.
When inventory costs rise, FIFO produces (________ ) net income than LIFO.
Answer: higher
5.
Stock dividends cause a (________ ) reallocation in equity accounts without cash outflow.
Answer: proportional
6.
Under IFRS, extraordinary items are (________ ) in financial reporting.
Answer: prohibited
7.
Capitalizing an expenditure increases future (________ ) expenses.
Answer: depreciation
8.
The matching principle requires expenses to be recognized in the same period as related (________ ).
Answer: revenues
9.
Treasury stock purchases (________ ) total equity.
Answer: decrease
10.
If control does not transfer to the buyer, revenue must be (________ ).
Answer: deferred
B. Planning, Budgeting & Forecasting
11.
The budget integrating all operational and financial components is the (________ ) budget.
Answer: master
12.
A budget based on a single expected volume level is called a (________ ) budget.
Answer: static
13.
A forecast that adjusts for recurring seasonal patterns uses (________ ) indices.
Answer: seasonality
14.
In rolling budgets, a new period is added whenever the current period is (________ ).
Answer: completed
15.
The variance caused solely by a change in activity volume is the (________ ) variance.
Answer: flexible budget
16.
The short-term plan detailing expected cash inflows and outflows is the (________ ) budget.
Answer: cash
17.
The learning curve assumes that labor hours decline at a constant (________ ) rate.
Answer: percentage
18.
Regression forecasting minimizes the sum of squared (________ ).
Answer: errors
19.
The key element that limits the organization’s operations is the (________ ) factor.
Answer: constraint / limiting
20.
An intentional overestimation of expenses in budgets is an example of (________ ) slack.
Answer: budgetary
C. Cost Management
21.
The difference between actual cost and standard cost is called a (________ ).
Answer: variance
22.
Equivalent units measure partially completed goods in terms of (________ ) units.
Answer: fully completed / completed
23.
Under-process costing, total costs are assigned to units using (________ ) costing.
Answer: weighted-average or FIFO
(Either is accepted)
24.
A cost that does not change within the relevant range is (________ ).
Answer: fixed
25.
Activity-based costing identifies resource consumption using (________ ) drivers.
Answer: activity
26.
Joint costs are allocated using physical measures or (________ ) value at split-off.
Answer: relative sales
27.
The cost-benefit analysis compares the incremental cost with the incremental (________ ).
Answer: benefit
28.
A cost that changes in steps rather than continuously is a (________ ) cost.
Answer: step-fixed
29.
The cost of goods manufactured schedule ends with (________ ) in process.
Answer: ending work
30.
Absorption costing treats fixed manufacturing overhead as a (________ ) cost.
Answer: product
D. Internal Controls
31.
An internal control weakness that allows fraud by collusion is a limitation of (________ ) controls.
Answer: preventive
32.
Controls that ensure operations align with objectives are part of the (________ ) component of COSO.
Answer: control environment
33.
Independence of internal auditors enhances the (________ ) of assurance.
Answer: objectivity
34.
A procedure that identifies unusual transactions after they occur is a (________ ) control.
Answer: detective
35.
COSO’s monitoring activities ensure controls continue to operate (________ ).
Answer: effectively
36.
Periodic password resets represent a (________ ) control in IT.
Answer: preventive
37.
Segregation of duties reduces the risk of errors and (________ ).
Answer: fraud
38.
Limiting user access based on job roles follows the (________ ) principle.
Answer: least privilege
39.
ITGCs include access controls, change controls, and (________ ) management.
Answer: operations
40.
A written policy defining acceptable technology use is an (________ ) control.
Answer: administrative
E. Performance Management
41.
A measure comparing profit to the capital invested is (________ ).
Answer: ROI
42.
A performance measure that avoids suboptimization by using a minimum return rate is (________ ) income.
Answer: residual
43.
The efficiency variance compares actual input quantity to (________ ) quantity.
Answer: standard
44.
In the balanced scorecard, innovation metrics fall under the (________ ) perspective.
Answer: learning and growth
45.
The throughput time metric is the sum of processing + waiting + inspection + (________ ) time.
Answer: move
46.
A company focused on continuous improvement follows the philosophy of (________ ).
Answer: Kaizen
47.
The rate at which output is produced per labor hour measures (________ ) productivity.
Answer: labor
48.
A variance caused by using a different proportion of materials than planned is a (________ ) variance.
Answer: mix
49.
Benchmarking compares a firm’s metrics to (________ ) performance.
Answer: best-in-class
50.
A bottleneck limits production capacity and therefore restricts (________ ).
Answer: throughput
F. Technology & Analytics
51.
ERP systems integrate data across functions to support a single (________ ) of truth.
Answer: source
52.
Excel’s regression output identifies significance using the (________ ) value.
Answer: p
53.
A data lake stores raw, unstructured data in its (________ ) form.
Answer: native
54.
RPA is most effective for tasks that are repetitive and (________ ).
Answer: rule-based
55.
Cybersecurity uses encryption to convert plaintext into (________ ) text.
Answer: cipher
56.
Anomaly detection in analytics is a common tool for identifying (________ ).
Answer: fraud
57.
The primary goal of data governance is maintaining data quality and (________ ).
Answer: integrity
58.
A sandbox environment allows testing without affecting (________ ) data.
Answer: production
59.
A blockchain ledger is immutable because each block contains a cryptographic (________ ).
Answer: hash
60.
The SDLC phase where user training and system rollout occur is (________ ).
Answer: implementation
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