Here are *100 MCQs from US CMA Part 1 New 2025 Syllabus* with answers.
*Coverage*: All 6 sections + Ethics. Weighted like real exam. Use for drill.
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*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: B*
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: C*
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: A* 100+20-15+10=115
4. *Temporary difference creating DTL:*
A. Warranty expense accrued
B. MACRS > Straight-line depreciation
C. NOL carryforward
D. Municipal bond interest
*Answer: B*
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: B* (500-50)/100
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: B*
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: B*
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: A* Trading goes to P&L
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: A* 84240×6%
10. *Revenue contract: $100k, 20% chance of $10k bonus. Transaction price = ?*
A. $100,000
B. $110,000
C. $102,000
D. $108,000
*Answer: C* 100k + 10k×20% = 102k expected value
11. *Which creates DTA?*
A. Prepaid rent deducted on tax return
B. Accrued warranty expense
C. Installment sale gain
D. Accelerated depreciation
*Answer: B* Book exp > tax exp now
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: B* Deduct gain from NI, proceeds in investing
13. *Treasury stock purchased. Effect on equity?*
A. Decrease total equity
B. No effect
C. Increase equity
D. Increase liabilities
*Answer: A*
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: D*
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: C* If EPS decreases
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*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: B*
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: B*
18. *80% learning curve. 1st unit 100 hrs. Avg time for 2 units = ?*
A. 100
B. 90
C. 80
D. 160
*Answer: C* 100×0.8=80
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: A* (50-38)/(10-6)=3
20. *Advantage of rolling budget:*
A. Less work
B. Always 12 months forward, more current
C. No variance analysis
D. Eliminates fixed costs
*Answer: B*
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: A* 120×0.6 + 100×0.4 = 72+40=112
22. *ZBB starts from:*
A. Last year budget
B. Zero
C. Industry average
D. Strategic plan only
*Answer: B*
23. *Regression: Y = 2,000 + 5X. If X=1,000, Y = ?*
A. 5,000
B. 7,000
C. 2,005
D. 10,000
*Answer: B*
24. *Expected value: 30% $100, 70% $200 = ?*
A. $150
B. $170
C. $130
D. $200
*Answer: B* 30+140
25. *Which budget is prepared first?*
A. Production
B. Sales
C. Cash
D. Direct Materials
*Answer: B*
26. *Disadvantage of incremental budgeting:*
A. Time consuming
B. Perpetuates inefficiencies
C. No control
D. Not GAAP
*Answer: B*
27. *Pro forma income statement is part of:*
A. Capital budget
B. Operating budget
C. Financial budget
D. Both B & C
*Answer: D*
28. *Sales forecast based on marketing manager opinion =*
A. Time series
B. Delphi
C. Judgmental
D. Regression
*Answer: C*
29. *Budget slack means:*
A. Overstating revenue
B. Understating costs
C. Padding budget to make targets easy
D. Using flexible budget
*Answer: C*
30. *Cash budget excludes:*
A. Depreciation
B. Loan repayment
C. Tax payment
D. Equipment purchase
*Answer: A*
31. *Activity-based budgeting starts with:*
A. Departments
B. Activities and cost drivers
C. Last year spend
D. Sales units
*Answer: B*
32. *If sales increase 10%, and DOL=2, PBIT increases:*
A. 10%
B. 5%
C. 20%
D. 2%
*Answer: C* 10×2
33. *Top-down budgeting risk:*
A. Unrealistic targets, low commitment
B. Too much time
C. No strategy link
D. No variance
*Answer: A*
34. *Kaizen budgeting focuses on:*
A. Large cuts
B. Continuous small improvements
C. Zero base
D. Fixed costs only
*Answer: B*
35. *Which is NOT a forecasting method?*
A. Regression
B. Exponential smoothing
C. Variance analysis
D. Time series
*Answer: C*
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*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: B* (5.00-5.20)×2100=420A
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: B* (2000-2200)×10=2000A
38. *FOH Volume Var only exists in:*
A. Marginal costing
B. Absorption costing
C. Both
D. Standard costing
*Answer: B*
39. *ROI = 20%. Assets $500k. Profit = ?*
A. $100,000
B. $25,000
C. $10,000
D. $250,000
*Answer: A*
40. *RI: Profit $50k, Assets $400k, RR 10%. RI = ?*
A. $10,000
B. $40,000
C. $90,000
D. $4,000
*Answer: A* 50-(400×0.1)
41. *Min transfer price if no excess capacity =*
A. Variable cost
B. Variable cost + Opportunity cost
C. Full cost
D. Market price
*Answer: B*
42. *Balanced Scorecard: “On-time delivery %” is which perspective?*
A. Financial
B. Customer
C. Internal Business
D. Learning
*Answer: B*
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: A* Actual > Std = F
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: A* 50-45=5A
45. *Responsibility center: Manager controls costs only =*
A. Profit center
B. Cost center
C. Investment center
D. Revenue center
*Answer: B*
46. *If actual production > budgeted, FOH Volume Var is:*
A. Favorable
B. Adverse
C. Zero
D. Not calculable
*Answer: A*
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: B*
48. *EVA = NOPAT – (WACC × Capital). EVA > 0 means:*
A. Destroying value
B. Creating value
C. Breakeven
D. ROI > 0
*Answer: B*
49. *Leading indicator example:*
A. Net Income
B. Customer satisfaction
C. Employee training hours
D. ROI
*Answer: C*
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: B*
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: A*
52. *Idle time variance = Idle Hours × ?*
A. Actual rate
B. Standard rate
C. Zero
D. VOH rate
*Answer: B* Always A
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: A*
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: B*
55. *Benchmarking type comparing to best in any industry =*
A. Internal
B. Competitive
C. Functional
D. Generic
*Answer: D*
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*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: B*
57. *Sunk cost example:*
A. Future rent
B. Machine already purchased
C. DM for new order
D. Opportunity cost
*Answer: B*
58. *ABC first step:*
A. Assign cost to products
B. Identify activities
C. Calc product cost
D. Choose allocation base
*Answer: B*
59. *Overapplied OH means:*
A. Applied < Actual
B. Applied > Actual
C. Actual = Budget
D. No OH
*Answer: B*
60. *Prorate overapplied OH: Dr Mfg OH, Cr ?*
A. WIP, FG, COGS
B. COGS only
C. Payables
D. Sales
*Answer: A* If material
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: B*
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: B*
63. *EOQ = √(2×200×1,000 / 2) = ?*
A. 200
B. 400
C. 447
D. 100
*Answer: C* √200,000=447
64. *TOC step 1:*
A. Elevate constraint
B. Identify constraint
C. Exploit constraint
D. Subordinate
*Answer: B*
65. *JIT goal:*
A. Large inventory
B. Zero inventory, zero defects
C. Max EOQ
D. High safety stock
*Answer: B*
66. *Life-cycle costing includes:*
A. Mfg costs only
B. R&D + Mfg + Marketing + Disposal
C. Period costs only
D. OH only
*Answer: B*
67. *Conversion cost =*
A. DM+DL
B. DL+FOH+VOH
C. DM+OH
D. All product costs
*Answer: B*
68. *Which is period cost?*
A. Factory rent
B. Sales commission
C. DM
D. DL
*Answer: B*
69. *Value chain: Which is primary activity?*
A. HR
B. Operations
C. Procurement
D. Firm infrastructure
*Answer: B*
70. *Target costing: Price $100, Desired profit 20%. Target cost = ?*
A. $80
B. $20
C. $120
D. $100
*Answer: A*
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*Section E: Internal Controls – 15 Qs*
71. *COSO 2013 has how many principles?*
A. 5
B. 17
C. 3
D. 10
*Answer: B*
72. *Tone at the top is part of:*
A. Control Activities
B. Control Environment
C. Monitoring
D. Risk Assessment
*Answer: B*
73. *Same person approves PO and receives goods. This violates:*
A. Authorization
B. Segregation of duties
C. Physical control
D. Documentation
*Answer: B*
74. *SOX 404 requires:*
A. CEO certify financials
B. Management assessment of ICFR + Auditor attestation
C. No audit committee
D. Quarterly only
*Answer: B*
75. *ITGC: Who should NOT have production access?*
A. Users
B. Developers
C. Operations
D. DBA
*Answer: B*
76. *Preventive control example:*
A. Bank reconciliation
B. Segregation of duties
C. Variance analysis
D. Audit
*Answer: B*
77. *Internal audit should report functionally to:*
A. CFO
B. CEO
C. Audit Committee
D. Controller
*Answer: C*
78. *Risk assessment principle: Management should:*
A. Ignore fraud risk
B. Specify objectives
C. Not consider change
D. Avoid controls
*Answer: B*
79. *Detective control:*
A. Password
B. Reconciliation
C. Access matrix
D. Lock
*Answer: B*
80. *Change management control:*
A. User access review
B. Testing and approval before prod move
C. Backup
D. Firewall
*Answer: B*
81. *SOX 302 penalty for false cert:*
A. No penalty
B. Fine + jail up to 20 years
C. Only fine
D. Warning
*Answer: B*
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: B*
83. *Whistleblower program is part of:*
A. Information
B. Control Environment
C. Monitoring
D. Risk Assessment
*Answer: B*
84. *Logical access control:*
A. Fence
B. Password
C. Guard
D. CCTV
*Answer: B*
85. *Compensating control example:*
A. Second person review when SOD not possible
B. No control
C. Preventive only
D. Eliminate risk
*Answer: A*
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*Section F: Technology & Analytics – 10 Qs*
86. *ERP benefit:*
A. Multiple databases
B. Single integrated database
C. No reporting
D. Manual only
*Answer: B*
87. *“What will happen?” is:*
A. Descriptive
B. Diagnostic
C. Predictive
D. Prescriptive
*Answer: C*
88. *Data variety means:*
A. Speed
B. Different data types: text, video
C. Volume
D. Accuracy
*Answer: B*
89. *RPA risk:*
A. Too slow
B. Bot has excessive access
C. No ROI
D. Manual
*Answer: B*
90. *Blockchain feature:*
A. Centralized
B. Immutable ledger
C. Editable by all
D. No security
*Answer: B*
91. *CIA Triad: Encryption protects:*
A. Availability
B. Confidentiality
C. Integrity
D. All
*Answer: B*
92. *Phishing attack targets:*
A. Network
B. Human users via email
C. Hardware
D. Database only
*Answer: B*
93. *Data warehouse is used for:*
A. Transaction processing
B. Analytics and reporting
C. Payroll
D. AP
*Answer: B*
94. *AI vs RPA:*
A. RPA = rules-based, AI = learns
B. Same
C. AI = manual
D. RPA = AI
*Answer: A*
95. *Data governance includes:*
A. Data quality, privacy, security
B. Only backup
C. Only reporting
D. No policies
*Answer: A*
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*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: C* Violation
97. *FCPA books & records provision requires:*
A. No records
B. Accurate books in reasonable detail
C. Cash basis only
D. No audit
*Answer: B*
98. *Fraud triangle: “I need money for medical bills” =*
A. Opportunity
B. Rationalization
C. Pressure
D. Capability
*Answer: C*
99. *First step when asked to manipulate earnings:*
A. Resign
B. Discuss with immediate supervisor
C. Call SEC
D. Do it
*Answer: B*
100. *Integrity requires:*
A. Mitigate conflicts of interest
B. Hide conflicts
C. Accept gifts
D. Bias
*Answer: A*
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*Answer Key Summary*:
1B 2C 3A 4B 5B 6B 7B 8A 9A 10C 11B 12B 13A 14D 15C 16B 17B 18C 19A 20B 21A 22B 23B 24B 25B 26B 27D 28C 29C 30A 31B 32C 33A 34B 35C 36B 37B 38B 39A 40A 41B 42B 43A 44A 45B 46A 47B 48B 49C 50B 51A 52B 53A 54B 55D 56B 57B 58B 59B 60A 61B 62B 63C 64B 65B 66B 67B 68B 69B 70A 71B 72B 73B 74B 75B 76B 77C 78B 79B 80B 81B 82B 83B 84B 85A 86B 87C 88B 89B 90B 91B 92B 93B 94A 95A 96C 97B 98C 99B 100A
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