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CMA-Strategic-Financial-Management Exam Dumps : CMA Part 2: Strategic Financial Management Exam

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CMA Part 2: Strategic Financial Management Exam Questions and Answers

Question 1

A furniture retail company uses the LIFO inventory method Due to the nigh inflation rate in me past year, the company's

Options:

A.

current ratio may be overstated

B.

quick ratio may be understated

C.

net income may be understated

D.

quick ratio may be overstated

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Question 2

The internal audit division of a company is investigating a potential fraud in the Accounts Payable department Someone in the department has been writing checks to fictitious vendors and collecting the cash The primary suspect Is an employee who has own with the company for twelve years and recently lost his Did for promotion to Director of Accounts Payable a position which would have given mm a 25% salary increase This employee has been heard complaining to several other employees in the department that he was cheated out of his raise. Which one of the following elements of the fraud triangle is this employee exhibiting?

Options:

A.

Pressure

B.

Rationalization

C.

Motive

D.

Opportunity

Question 3

When evaluating a capital Budgeting proposal, an advantage of using the payback method is that Bits process

Options:

A.

assesses the liquidity of the project.

B.

considers the time value of money.

C.

incorporates all of the project's cash inflows and outflows

D.

objectively determines if the proposal should be accepted or rejected.