Certified Management Accountant

FREE Certified Management Accountant Trivia Question and Answers

A corporation has a $10,000 negative fixed overhead volume variance. This difference's most likely source is that

more was produced than planned

the production supervisory salaries were greater than planned

less was produced than planned

the production supervisory salaries were less than planned

Correct! Wrong!

Which of the following audit types is more likely to concentrate on goals linked to resource utilization efficiency?

Independent audit

Compliance audit

Operational audit

Information systems audit

Correct! Wrong!

Explanation:
An operational audit is a technique for assessing how a company runs its operations. Analyzing the systems, practices, and processes in use within the firm is necessary. This kind of audit evaluates the organization's management procedures in addition to its financial situation. An operational audit looks for areas where the organization's operations can be made to be more productive, efficient, and successful.

Which of the following would be most likely to result in the failure of the planning and budgeting system?

input from several levels of management

top management support

adherence to rigid budgets during the year

historical financial data

Correct! Wrong!

Explanation:
A key component of every project's success is top management backing (Young & Jordan, 2008). The acceptance, application, and execution of the cost volume profit analysis findings are anticipated to increase, which could have an impact on effective planning.

Which of the following best describes an electronic data processing system's internal control system's weakness?

New systems are created by the systems analyst, who also oversees system testing.

The computer operator oversees program execution and data file custody while carrying out operational instructions.

The data control group examines, tests, and manages the reprocessing of mistakes that the computer has identified.

The receivables clerk gathers information, enters it into the computer system, and checks the output for mistakes.

Correct! Wrong!

Except for the following, a statement of financial position serves as the foundation for

evaluating capital structure

determining profitability and assessing past performance

computing rates of return

assessing liquidity and financial flexibility

Correct! Wrong!

Henry Company paid $100,000 for shares in Striped Inc. three years ago. The price of this stock throughout the current fiscal year was $150,000. The outcome of this transaction ought to be represented as follows in Henry' Statement of Cash Flows' Investing Activities section:

$50,000

$150,000

$100,000

Correct! Wrong!

Which of the following accounting and management methods is least likely to help internal auditors evaluate how effectively the separate profit centers are using resources?

Flexible Budgets

Cost Variance Analysis

Joint Cost Allocations

Activity-based Management

Correct! Wrong!

Explanation:
The accounting method known as shared cost allocation allows a charity to record some of the costs of a multi-purpose mail campaign as an advocacy or education activity and some of those costs as a fundraising expense under specific specified circumstances.

FREE Certified Management Accountant Trivia Question and Answers

A corporation has a $10,000 negative fixed overhead volume variance. This difference's most likely source is that

Which of the following audit types is more likely to concentrate on goals linked to resource utilization efficiency?

Which of the following would be most likely to result in the failure of the planning and budgeting system?

Which of the following best describes an electronic data processing system's internal control system's weakness?

Except for the following, a statement of financial position serves as the foundation for

Henry Company paid $100,000 for shares in Striped Inc. three years ago. The price of this stock throughout the current fiscal year was $150,000. The outcome of this transaction ought to be represented as follows in Henry' Statement of Cash Flows' Investing Activities section:

Which of the following accounting and management methods is least likely to help internal auditors evaluate how effectively the separate profit centers are using resources?

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