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Cma Exam Part One – 2024 Questions And Answers With Verified Solutions 100% Correct!!!
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Cma Exam Part One – 2024 Questions And Answers With Verified Solutions 100% Correct!!!
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Cma Exam Part One – 2024 QuestionsAnd Answers With Verified Solutions
100% Correct!!!
What is the name of the metric that is the final statement review (balance)? -
ANSWER✔✔Post Closing Trial Balance
What 2 main categories make up Equity? - ANSWER✔✔1. Contributed Capital
2. Retained Earnings
What are the 3 types of adjusting entries? - ANSWER✔✔1. Prepayments /
Deferrals
2. Estimates (ex; Fixed Asset Depreciation)
3. Accruals
What are the only types of accounts affected in the post close trial balance? -
ANSWER✔✔Balance Sheet Accounts
What is the designated name for revenue generated from primary acitvity? -
ANSWER✔✔Operating Revenue
What is the manipulation of assumptions and estimates referred to as? -
ANSWER✔✔Income Smoothing
Warranty Costs, Depreciation on Fixed Assets, and Allowances for Bad Debt are
all examples of what? - ANSWER✔✔Esimates
,The 4 main classifications of shareholder equity are: - ANSWER✔✔1. Paid in
capital
2. Retained Earnings
3. Comprehensive Income
4. Treasury Stock
The number of shares of each class of stock and their status as authorized, issued,
or outstanding must or must not be disclosed in the financial statements of a
company? - ANSWER✔✔Must
What is retained earnings? - ANSWER✔✔The accumulated earnings or losses
during the life of the corporation that have not been paid out as dividends
What do we classify stock purchased by a corporation in excess of par value? -
ANSWER✔✔Additional Paid in Capital
What are the 5 main categories of assets? - ANSWER✔✔1. Current Assets
2. Investments and Funds
3. Property, Plant, and Equipment
4. Intangibles
5. Other Assets (ex; long term prepayments)
What is the key limitation of the balance sheet in relation to the stated equity of a
company? - ANSWER✔✔That the assets minus the liabilities of a company will
most never equal the market value -
, What is the Statement of Cash Flows derived from and why? - ANSWER✔✔The
Balance Sheet, because the beginning and ending balance of the cash needs to be
stated
True or False: The SCF effectively reverses the effects of accrual accounting? -
ANSWER✔✔True
What kind of SCF activity deals with the purchase or sale of non-current assets? -
ANSWER✔✔Investing Activities
What kind of SCF activity deals with the ontake of non-current liabilities or
equity? - ANSWER✔✔Financing Activities
The only difference between the direct method and the indirect method of the SCF
is the preparation of the _________________ activities. - ANSWER✔✔Operating
What does the Indirect CF from Operating Activities begin with? -
ANSWER✔✔Accrual Basis Net Income
Cash flows from Financing Activities are the also known as the CF's from
_______________ ________________. - ANSWER✔✔Financial Instruments
Step 1 of the Indirect Method of Operating Cash Flows - ANSWER✔✔Add non-
cash expenses to the Accrual Basis Net Income (depreciation, amortization)
Step 2 of the Indirect Method of Operating Cash Flows - ANSWER✔✔Subtract
Gains and Add Losses (this is because gains and losses on the sale of assets are
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