CMA考试例题

1.  If a firm currently producing 500 units of output incurs total fixed costs of $10,000 and total variable costs of $15,000, the average total cost per unit is

a. $25.
b. $20.
c. $30.
d. $50.

2.  Lyman Company has the opportunity to increase annual sales $100,000 by selling to a new, riskier group of customers. The uncollectible expense is expected to be 15%, and collection costs will be 5%. The company's manufacturing and selling expenses are 70% of sales, and its effective rate 40%. If Lyman should accept this opportunity, the company's after-tax profits would increase by
a. $6,000
b. $10,000
c. $10,200
d. $14,400

3.  A manufacturing concern sells its sole product for $10 per unit, with a unit contribution margin of $6. The fixed manufacturing cost rate per unit is $2 based on a denominator capacity of 1 million units, and fixed marketing costs are $1.5 million. If 900,000 units are produced, the absorption-costing breakeven point in units sold is

a. 425,000 units.
b. 583,333 units.
c. 900,000 units.
d. 1,000,000 units


4.  The principle of substitution states that
a. The firm is indifferent to using either factor of production.
b. Profit maximization is maintained while choosing either factor of production.
c. The firm chooses more of the less expensive factor of production.
d. The firm chooses more of the more expensive factor of production.

5.  A firm experiences increasing returns due to
a. The substitution of one factor of production that uses a greater proportion of resources for another factor.
b. Economies of scale.
c. Opportunity costs.
d. Equal costs of the factors of production.

6.  Colt Inc. is planning to use retained  earnings to finance anticipated capital expenditures. The beta coefficient for Colt’s stock is 1.15, the risk-free rate of interest is 8.5 percent, and the market return is  estimated at 12.4 percent. If a new issue of common stock was used in this model, the flotation costs would be 7 percent. By using the Capital Asset Pricing Model equation [R=RF + B(RM-RF)], the cost  of using retained earnings to finance the capital expenditures is
a. 13.21 percent.
b. 12.99 percent.
c. 12.40 percent.
d. 14.26 percent.

7.  The firm’s technological improvements in the production of a normal good will

a. Shift the supply curve to the right.
b. Not affect either the demand curve or the supply curve.
c. Shift the supply curve the left.
d. Shift the demand curve to the left.

8.  If a product is part of the consumers’ basket of goods, and the Consumer Price Index increased seven percent for the year while the
price of this normal good increased three percent, then

a. The supply curve will shift to the left.
b. Neither the demand curve nor the supply curve will be affected.
c. The relative price of the good is equal to other goods.
d. The demand curve will shift to the right.

9.  When the demand for a normal good is considered inelastic, then a(n)

a. Decrease in price will increase total revenue.
b. Increase in price will reduce total revenue.
c. Rise or fall in price will affect demand.
d. Decrease in price will reduce total revenue.

10. The following information regarding inventory policy was assembled by the JRJ Corporation. The company uses a 50 - week year in all calculations.

Sales(annual)                    10,000 units
Order quantity                   2,000 units
Safety stock                      1,500 units
Lead time                          5 weeks
The reorder point is

a. 3,300 units.
b. 2,500 units.
c. 100 units.
d. 1,300 units.

11. The principal advantage of using commercial paper as a short-term financing instrument is that it

a. Is generally cheaper than a commercial bank loan.
b. Is readily available to almost all companies.
c. Offers security, i.e., collateral, to the lender.
d. Can be purchased without commission costs.

12. Since Marsh Inc. is experiencing a sharp increase in sales activity and a steady increase in production, the management of Marsh has adopted an aggressive working capital policy. Therefore, the company’s current level of net working capital

a.Would most likely be the same as  in any other type of business condition as business cycles tend to balance out  over time.
b.Would most likely be lower than under other business conditions in order that the company can maximize profits while minimizing working capital investment.
c.Would most likely be higher than under other business conditions so that there will be sufficient funds to replenish assets.
d.Can be financed most economically through the sale of common stock.

13.  On January 1, 19x6, Boggs Inc. paid $700,000 for 100,000 shares of Mattly corporation representing 30 percent of Mattly's outstanding common stock.  The following computation  was  made by Boggs.

Purchase price                      $700,000
30 percent equity in book value
of Mattly's net assets                500,000
Excess cost over book value          $200,000
The excess cost over book value was attributed to goodwill and will be amortized over 20 years.
Mattly reported net income for the year ended December 31, 19x6, of $300,000.  Mattly Corporation paid cash dividends of $100,000 on July l, 19x6.
If Boggs Inc. exercised significant influence over Mattly corporation and properly accounted for the long-term investment under the equity method, the amount of net investment revenue Boggs should report from its investment in Mattly would be

a.  $30,000.
b.  $60,000.
c.  $80,000.
d.  $90,000.

14.Ram Company uses the specific identification method of inventory valuation for internal reporting purposes and the last-in, first-out (LIFO) method for external reporting and tax purposes. The inventory at November 30, 19x1, the end of Ram's fiscal year, was valued at $500,000 using specific identification and $450,000 using LIFO.  The preadjusted credit balance in the LIFO reserve account on November 30, 19x1, was $30,000.  The adjusting entry required to reflect inventory on the LIFO basis as of November 31, 19x1, would be to

a.  Debit inventory for $20,000 and credit LIFO reserve for $20,000.
b.  Debit inventory for $20,000 and credit cost of goods sold for $20,000.
c.  Debit cost of goods sold for $50,000 and credit LIFO reserve for $50,000.
d.  Debit cost of goods sold for $20,000 and credit LIFO reserve for $20,000.

15  The accounting records of The Sarah Boutique contain the following amounts on November 30,19x2, the end of its fiscal year:
                                    Cost           Retail
Beginning inventory                $ 68,000      $100,000
Purchases                           262,000       400,000
Net markups                                        50,000
Net markdowns                                     110,000
Sales                                             360,000
The Sarah Boutique's ending inventory as of November 30, 19x2, computed by the conventional retail  method is

a.  $80,000.
b.  $60,000.
c.  $54,400.
d.  $48,000.

16.  On July 1, 19x7, Sandell Corporation traded in a piece of equipment for a larger model with a fair market price of $500,000.  Sandell had purchased the original equipment in 19x5 for $280,000 and recognized depreciation of $120,000 up to the date of the trade.  The seller gave Sandell a trade-in-allowance of $180,000 on the original equipment.  To record this disposal for book purposes, the accountant should recognize

a.  a gain on disposal, with the new unit recorded at $500,000.
b.  a loss on disposal, with the new unit recorded at $500,000.
c.  a gain on disposal, with the new unit recorded at $500,000.
d.  no gain or loss on disposal, with the new unit recorded at book value of the traded unit plus cash paid (or owed).

17.  The following is Gold Corp.'s June 30 trial balance:
Cash overdraft                                         $ 10,000
Accounts receivable (net)       $ 35,000
Inventory                         58,000
Prepaid expenses                  12,000
Land held for resale             100,000
Property, plant, and
equipment (net)                   95,000
Accounts payable and
accrued expenses                                         32,000
Common stock                                             25,000
Additional paid-in capital                              150,000
Retained earnings                                        83,000
                                 $300,000              $300,000
Additional information:
Checks amounting to $30,000 were written to vendors and recorded on June 29, resulting in a cash
overdraft of $10,000.  The checks were mailed on July 9.
Land held for resale was sold for cash on July 15.
Gold issued its financial statements on July 31.
In its June 30 balance sheet, what amount should Gold report as current assets?

a.  $225,000.
b.  $205,000.
c.  $195,000.
d.  $125,000.