Free IMANET CMA Exam Actual Questions

The questions for CMA were last updated On Feb 19, 2025

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Question No. 1

Which of the following is not a component of the value chain?

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Correct Answer: B

The value chain is a model for depicting the way in which every function in a company adds value to the final product. Primary activities deal with the product directly. Support activities lend aid to the primary activity functions.


Question No. 2

For capital budgeting purposes, management would select a high hurdle rate of return for certain projects because management

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Correct Answer: D

Risk analysis attempts to measure the likelihood of the variability of future returns from the proposed investment. Risk can be incorporated into capital budgeting decisions in a number of ways, one of which is to use a hurdle rate (desired rate of return) higher than the firm's cost of capital, that is, a risk-adjusted discount rate. This technique adjusts the interest rate used for discounting upward as an investment becomes riskier. The expected flow from the investment must be relatively larger or the increased discount rate will generate a negative net present value, and the proposed acquisition will be rejected.


Question No. 3

Marston Enterprises sells three chemicals: petrol, septine, and tridol. Petrol is the company's most profitable product tridol is the least profitable. Which one of the following events will definitely decrease the firm's overall breakeven point for the upcoming accounting period?

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Correct Answer: D

A company's breakeven point will be reduced if fixed costs are lowered or the average unit contribution margin is increased. Given that petrol is the company's most profitable product, and assuming that it has a higher unit contribution margin than septine and tridol, an increase in sales of petrol relative to the other products will result in a higher average unit contribution margin and a lower breakeven point (fixed costs average UCM).


Question No. 4

Shelf registration of a security is a procedure affixing a front

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Correct Answer: C

SEC Rule 415 allows corporations to file registration statements covering a stipulated amount of securities that may be issued over the 2-year effective penned of the statement The securities are placed on the shelf and issued at an opportune moment without the necessity of tiling a new registration statement, observing a 20-day waiting period, or prepping a new prospectus The issuer is required only to provide updating amendments or to refer investors to quarter and annual statements tiled with the SEC. Shelf registration is most advantageous to large corporations that frequent offer securities to the pubic.


Question No. 5

An example of secured short-term financing is

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Correct Answer: B

A document of title is usually issued by a bailee covering goods in the bailee's possession or care (UCC 1-201). It represents ownership of the goods and is ordinarily needed to obtain the goods from the baillee. The two major types of documents of title are bills of lading (issued by carriers) and warehouse receipts. A warehouse receipt is issued by a person engaged in the business of storing goods for hire. Security for short-term inventory financing can be arranged if the debtor places its inventory under the control of the lender or its agent (e g , a public warehouse), and the lender holds the warehouse receipts.