Here are 100 MCQs from US CMA Part 1 New 2025 Syllabus
*Coverage*: All 6 sections + Ethics. Weighted like real exam. Use for drill.
*Section A: External Financial Reporting – 15 Qs*
1. *Under ASC 606, when is revenue recognized for a service performed over time?*
A. On completion
B. As the performance obligation is satisfied
C. When cash is received
D. When contract is signed
*Answer:
2. *A lease with 12-month term and no purchase option is:*
A. Finance lease
B. Operating lease with ROU asset
C. Short-term lease, expense only
D. Sales-type lease
*Answer:
3. *Net Income $100,000. Depreciation $20,000. A/R inc $15,000. A/P inc $10,000. CFO = ?*
A. $115,000
B. $105,000
C. $125,000
D. $95,000
*Answer:
4. *Temporary difference creating DTL:*
A. Warranty expense accrued
B. MACRS > Straight-line depreciation
C. NOL carryforward
D. Municipal bond interest
*Answer:
5. *Basic EPS: NI $500,000, Preferred Div $50,000, Wtd Avg Shares 100,000. EPS = ?*
A. $5.00
B. $4.50
C. $5.50
D. $4.00
*Answer:
6. *Stock dividend 10% vs stock split 2-for-1. Impact on RE?*
A. Both reduce RE
B. Stock div reduces RE, split does not
C. Both have no impact
D. Split reduces RE
*Answer:
7. *Functional currency = USD. Foreign subsidiary uses local currency. Translation gain goes to:*
A. Net Income
B. OCI as CTA
C. Retained Earnings
D. APIC
*Answer:
8. *Which is NOT part of OCI?*
A. Unrealized gain on trading securities
B. Foreign currency translation adjustment
C. Pension prior service cost
D. Unrealized gain on AFS debt
*Answer:
9. *Lessee Yr1: Lease Liab $84,240, Rate 6%, Payment $20,000. Interest Exp Yr1 = ?*
A. $5,054
B. $4,000
C. $3,854
D. $5,000
*Answer:
10. *Revenue contract: $100k, 20% chance of $10k bonus. Transaction price = ?*
A. $100,000
B. $110,000
C. $102,000
D. $108,000
*Answer:
11. *Which creates DTA?*
A. Prepaid rent deducted on tax return
B. Accrued warranty expense
C. Installment sale gain
D. Accelerated depreciation
*Answer
12. *Cash flow: Sale of equipment at gain. Gain shown in:*
A. Operating, add back
B. Operating, deduct
C. Investing, full proceeds
D. Financing
*Answer:
13. *Treasury stock purchased. Effect on equity?*
A. Decrease total equity
B. No effect
C. Increase equity
D. Increase liabilities
*Answer:
14. *Lessor classifies lease as sales-type if:*
A. PV of payments ≥ substantially all FV
B. Lease term = major part of life
C. Collectibility not probable
D. A or B
*Answer:
15. *EPS: Convertibles increase shares but also increase NI due to interest saved. This is:*
A. Basic EPS
B. Antidilutive, ignore
C. Dilutive
D. Always included
*Answer:
---
*Section B: Planning, Budgeting & Forecasting – 20 Qs*
16. *Best budget for cost control at different volumes:*
A. Static
B. Flexible
C. Rolling
D. Zero-based
*Answer:
17. *Production units = Sales 10,000 + End FG 2,000 – Beg FG 1,500 = ?*
A. 9,500
B. 10,500
C. 11,500
D. 8,500
*Answer
18. *80% learning curve. 1st unit 100 hrs. Avg time for 2 units = ?*
A. 100
B. 90
C. 80
D. 160
*Answer:
19. *High-Low: High 10,000 units $50,000. Low 6,000 units $38,000. VC/unit = ?*
A. $3.00
B. $4.00
C. $5.00
D. $2.00
*Answer:
20. *Advantage of rolling budget:*
A. Less work
B. Always 12 months forward, more current
C. No variance analysis
D. Eliminates fixed costs
*Answer:
21. *Cash collections: Sales $100k. 60% month of sale, 40% next. Month 2 sales $120k. Cash in Month 2 = ?*
A. $112,000
B. $100,000
C. $120,000
D. $88,000
*Answer:
22. *ZBB starts from:*
A. Last year budget
B. Zero
C. Industry average
D. Strategic plan only
*Answer:
23. *Regression: Y = 2,000 + 5X. If X=1,000, Y = ?*
A. 5,000
B. 7,000
C. 2,005
D. 10,000
*Answer:
24. *Expected value: 30% $100, 70% $200 = ?*
A. $150
B. $170
C. $130
D. $200
*Answer:
25. *Which budget is prepared first?*
A. Production
B. Sales
C. Cash
D. Direct Materials
*Answer:
26. *Disadvantage of incremental budgeting:*
A. Time consuming
B. Perpetuates inefficiencies
C. No control
D. Not GAAP
*Answer:
27. *Pro forma income statement is part of:*
A. Capital budget
B. Operating budget
C. Financial budget
D. Both B & C
*Answer:
28. *Sales forecast based on marketing manager opinion =*
A. Time series
B. Delphi
C. Judgmental
D. Regression
*Answer:
29. *Budget slack means:*
A. Overstating revenue
B. Understating costs
C. Padding budget to make targets easy
D. Using flexible budget
*Answer:
30. *Cash budget excludes:*
A. Depreciation
B. Loan repayment
C. Tax payment
D. Equipment purchase
*Answer:
31. *Activity-based budgeting starts with:*
A. Departments
B. Activities and cost drivers
C. Last year spend
D. Sales units
*Answer:
32. *If sales increase 10%, and DOL=2, PBIT increases:*
A. 10%
B. 5%
C. 20%
D. 2%
*Answer:
33. *Top-down budgeting risk:*
A. Unrealistic targets, low commitment
B. Too much time
C. No strategy link
D. No variance
*Answer:
34. *Kaizen budgeting focuses on:*
A. Large cuts
B. Continuous small improvements
C. Zero base
D. Fixed costs only
*Answer:
35. *Which is NOT a forecasting method?*
A. Regression
B. Exponential smoothing
C. Variance analysis
D. Time series
*Answer:
---
*Section C: Performance Management – 20 Qs*
36. *Std: 2kg@$5. Actual: 2,100kg@$5.20 for 1,000 units. MPV = ?*
A. $400 F
B. $420 A
C. $400 A
D. $420 F
*Answer:
37. *SH=2,000 hrs, AH=2,200 hrs, SR=$10. Labor Eff Var = ?*
A. $2,000 F
B. $2,000 A
C. $200 A
D. $200 F
*Answer:
38. *FOH Volume Var only exists in:*
A. Marginal costing
B. Absorption costing
C. Both
D. Standard costing
*Answer:
39. *ROI = 20%. Assets $500k. Profit = ?*
A. $100,000
B. $25,000
C. $10,000
D. $250,000
*Answer:
40. *RI: Profit $50k, Assets $400k, RR 10%. RI = ?*
A. $10,000
B. $40,000
C. $90,000
D. $4,000
*Answer:
41. *Min transfer price if no excess capacity =*
A. Variable cost
B. Variable cost + Opportunity cost
C. Full cost
D. Market price
*Answer:
42. *Balanced Scorecard: “On-time delivery %” is which perspective?*
A. Financial
B. Customer
C. Internal Business
D. Learning
*Answer:
43. *Sales Price Var = (AP $12 – SP $10)×1,000 = ?*
A. $2,000 F
B. $2,000 A
C. $1,000 F
D. $1,000 A
*Answer:
44. *VOH Exp Var = Actual $50k – (AH 5,000×$9) = ?*
A. $5,000 A
B. $5,000 F
C. $45,000 A
D. $45,000 F
*Answer:
45. *Responsibility center: Manager controls costs only =*
A. Profit center
B. Cost center
C. Investment center
D. Revenue center
*Answer:
46. *If actual production > budgeted, FOH Volume Var is:*
A. Favorable
B. Adverse
C. Zero
D. Not calculable
*Answer:
47. *Sales Volume Var in absorption = (AQ–BQ)×Std Profit. In marginal = (AQ–BQ)×?*
A. Std Profit
B. Std CM
C. Actual CM
D. Std Price
*Answer:
48. *EVA = NOPAT – (WACC × Capital). EVA > 0 means:*
A. Destroying value
B. Creating value
C. Breakeven
D. ROI > 0
*Answer:
49. *Leading indicator example:*
A. Net Income
B. Customer satisfaction
C. Employee training hours
D. ROI
*Answer:
50. *Mix Variance arises when:*
A. Total input differs from std
B. Actual mix differs from std mix
C. Price differs
D. Yield differs
*Answer:
51. *Yield Variance = (Actual Output – Std Output from actual input)×?*
A. Std cost per unit of output
B. Actual cost
C. Std price
D. Actual price
*Answer:
52. *Idle time variance = Idle Hours × ?*
A. Actual rate
B. Standard rate
C. Zero
D. VOH rate
*Answer:
53. *Goal congruence means:*
A. Division goals align with company goals
B. All divisions have same ROI
C. No transfer pricing
D. Profit max only
*Answer:
54. *Dysfunctional behavior with ROI:*
A. Accept all projects > WACC
B. Reject project earning 12% if division ROI=15%, WACC=10%
C. Use RI
D. Increase assets
*Answer:
55. *Benchmarking type comparing to best in any industry =*
A. Internal
B. Competitive
C. Functional
D. Generic
*Answer:
---
*Section D: Cost Management – 15 Qs*
56. *Prime Cost =*
A. DM+DL+OH
B. DM+DL+Direct Exp
C. DL+OH
D. DM+OH
*Answer:
57. *Sunk cost example:*
A. Future rent
B. Machine already purchased
C. DM for new order
D. Opportunity cost
*Answer
58. *ABC first step:*
A. Assign cost to products
B. Identify activities
C. Calc product cost
D. Choose allocation base
*Answer:
59. *Overapplied OH means:*
A. Applied < Actual
B. Applied > Actual
C. Actual = Budget
D. No OH
*Answer:
60. *Prorate overapplied OH: Dr Mfg OH, Cr ?*
A. WIP, FG, COGS
B. COGS only
C. Payables
D. Sales
*Answer:
61. *Joint cost allocation: Sales Value at Split-off uses:*
A. Final sales value
B. Value at split-off point
C. NRV
D. Physical units
*Answer:
62. *By-product NRV $10,000, inventoried. Joint cost $100,000. Cost to allocate = ?*
A. $100,000
B. $90,000
C. $110,000
D. $10,000
*Answer:
63. *EOQ = √(2×200×1,000 / 2) = ?*
A. 200
B. 400
C. 447
D. 100
*Answer:
64. *TOC step 1:*
A. Elevate constraint
B. Identify constraint
C. Exploit constraint
D. Subordinate
*Answer:
65. *JIT goal:*
A. Large inventory
B. Zero inventory, zero defects
C. Max EOQ
D. High safety stock
*Answer:
66. *Life-cycle costing includes:*
A. Mfg costs only
B. R&D + Mfg + Marketing + Disposal
C. Period costs only
D. OH only
*Answer:
67. *Conversion cost =*
A. DM+DL
B. DL+FOH+VOH
C. DM+OH
D. All product costs
*Answer:
68. *Which is period cost?*
A. Factory rent
B. Sales commission
C. DM
D. DL
*Answer:
69. *Value chain: Which is primary activity?*
A. HR
B. Operations
C. Procurement
D. Firm infrastructure
*Answer:
70. *Target costing: Price $100, Desired profit 20%. Target cost = ?*
A. $80
B. $20
C. $120
D. $100
*Answer:
---
*Section E: Internal Controls – 15 Qs*
71. *COSO 2013 has how many principles?*
A. 5
B. 17
C. 3
D. 10
*Answer:
72. *Tone at the top is part of:*
A. Control Activities
B. Control Environment
C. Monitoring
D. Risk Assessment
*Answer:
73. *Same person approves PO and receives goods. This violates:*
A. Authorization
B. Segregation of duties
C. Physical control
D. Documentation
*Answer:
74. *SOX 404 requires:*
A. CEO certify financials
B. Management assessment of ICFR + Auditor attestation
C. No audit committee
D. Quarterly only
*Answer:
75. *ITGC: Who should NOT have production access?*
A. Users
B. Developers
C. Operations
D. DBA
*Answer:
76. *Preventive control example:*
A. Bank reconciliation
B. Segregation of duties
C. Variance analysis
D. Audit
*Answer:
77. *Internal audit should report functionally to:*
A. CFO
B. CEO
C. Audit Committee
D. Controller
*Answer:
78. *Risk assessment principle: Management should:*
A. Ignore fraud risk
B. Specify objectives
C. Not consider change
D. Avoid controls
*Answer:
79. *Detective control:*
A. Password
B. Reconciliation
C. Access matrix
D. Lock
*Answer:
80. *Change management control:*
A. User access review
B. Testing and approval before prod move
C. Backup
D. Firewall
*Answer:
81. *SOX 302 penalty for false cert:*
A. No penalty
B. Fine + jail up to 20 years
C. Only fine
D. Warning
*Answer:
82. *Inherent risk vs Control risk:*
A. Inherent = risk controls fail, Control = risk of misstatement
B. Inherent = risk of misstatement before controls, Control = risk controls fail
C. Same
D. Neither exist
*Answer:
83. *Whistleblower program is part of:*
A. Information
B. Control Environment
C. Monitoring
D. Risk Assessment
*Answer:
84. *Logical access control:*
A. Fence
B. Password
C. Guard
D. CCTV
*Answer:
85. *Compensating control example:*
A. Second person review when SOD not possible
B. No control
C. Preventive only
D. Eliminate risk
*Answer:
---
*Section F: Technology & Analytics – 10 Qs*
86. *ERP benefit:*
A. Multiple databases
B. Single integrated database
C. No reporting
D. Manual only
*Answer:
87. *“What will happen?” is:*
A. Descriptive
B. Diagnostic
C. Predictive
D. Prescriptive
*Answer:
88. *Data variety means:*
A. Speed
B. Different data types: text, video
C. Volume
D. Accuracy
*Answer:
89. *RPA risk:*
A. Too slow
B. Bot has excessive access
C. No ROI
D. Manual
*Answer:
90. *Blockchain feature:*
A. Centralized
B. Immutable ledger
C. Editable by all
D. No security
*Answer
91. *CIA Triad: Encryption protects:*
A. Availability
B. Confidentiality
C. Integrity
D. All
*Answer:
92. *Phishing attack targets:*
A. Network
B. Human users via email
C. Hardware
D. Database only
*Answer:
93. *Data warehouse is used for:*
A. Transaction processing
B. Analytics and reporting
C. Payroll
D. AP
*Answer:
94. *AI vs RPA:*
A. RPA = rules-based, AI = learns
B. Same
C. AI = manual
D. RPA = AI
*Answer:
95. *Data governance includes:*
A. Data quality, privacy, security
B. Only backup
C. Only reporting
D. No policies
*Answer:
---
*Ethics – 5 Qs*
96. *IMA: “Confidentiality” requires NOT:*
A. Keep info confidential
B. Disclose per legal obligation
C. Use for personal advantage
D. Inform all parties
*Answer:
97. *FCPA books & records provision requires:*
A. No records
B. Accurate books in reasonable detail
C. Cash basis only
D. No audit
*Answer:
98. *Fraud triangle: “I need money for medical bills” =*
A. Opportunity
B. Rationalization
C. Pressure
D. Capability
*Answer:
99. *First step when asked to manipulate earnings:*
A. Resign
B. Discuss with immediate supervisor
C. Call SEC
D. Do it
*Answer:
100. *Integrity requires:*
A. Mitigate conflicts of interest
B. Hide conflicts
C. Accept gifts
D. Bias
*Answer:
www.GMSIsuccess.in
For online exam platform for US CMA US CPA CIA FRM ACCA click here ✍️
www.finzo.pw
No comments:
Post a Comment