CMA-Strategic-Financial-Management Exam Questions Tutorials

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Question 12

Management is responsible for identifying potential events mat could represent opportunities or threats. Which one of the following is not a viable event identification technique?

Options:

Facilitated workshops and interviews

Loss event data methodologies

Review of control categories

Process flow analysis

Question 13

A capital budgeting analysis involves an initial investment of $500. The expected cash inflow in Year 1 is $300, and the expected cash inflow in Year 2 is $350. Which one of the following equations can get the correct internal rate of return (IRR) of this project?

Options:

$500 = $300/(1 + IRR) + $350/(1 + IRR)

$500 = $300/(1 + IRR) + $350/(1 + IRR)2

-$500 = $300'(1 + IRR) + 5350/(1 + IRR)2

$0 = $300/(1 + IRR) + $350/11 + IRR)2

Question 14

Southwest Supplies Inc. (SSI) is considering the following two projects with cash-flows discounted at SSI's weighted average cost of capital.

SSI can only afford to invest in one of the projects. Which statement would most likely explain why SSI would choose Project B over project A?

Options:

Project B results in a higher cumulative accounting income

Project B generates significantly more non-cash expenses

Project B cash-flows are relatively more certain

Project B cash-flows are to be received sooner

Question 15

A management accountant overheard the company's procurement manager discussing a kickback payment for one of the company s recent projects. The procurement manager promised to pay a share to the other person II the arrangement was kept confidential According to the IMA Statement of Ethical Professional Practice which one of the following is the most appropriate action for the management accountant to take?