Free Certified Management Accountant MCQ Question and Answers

Question 1

Which profit margin calculation best represents prospective earnings?

Accepted Answer

Gross profit margin

Answer

Operating profit margin

Answer

Financing profit margin

Answer

Net profit margin

Question 2

Multinational firms defend themselves from vulnerability to currency conversion risk by:

Accepted Answer

preparing consolidated financial statements

Answer

hiring accountants from their subsidiaries countries

Answer

using a standard exchange rate

Answer

purchasing materials from foreign nations

Question 3

What kind of trade organization employs a standard unit of account for its members?

Accepted Answer

Economic union

Answer

Free trade market

Answer

Custom union

Answer

Common market

Question 4

Which of the following is not a modification of accounting principles?

Accepted Answer

Discontinued operations

Answer

Change in depreciation method

Answer

Change in inventory method

Answer

Change to accrual accounting

Question 5

Which of the following variables could influence return rates?

Accepted Answer

Compounded interest

Answer

Book value

Answer

Marginal cost of capital

Answer

Amount of risk

Question 6

What does the return's standard deviation represent?

Accepted Answer

Investment risk

Answer

Potential outcome of a gain or loss

Answer

Level of risk

Answer

Profitability

Question 7

Which financial instrument forecasts the rate of a short-term investment's value decline?

Accepted Answer

Value at Risk

Answer

Diversification

Answer

Rate of return

Answer

Hedging