CMA (Certified Management Accountant) Practice Questions — All Questions
AllPlanning, Budgeting & ForecastingPerformance ManagementCost ManagementInternal ControlsFinancial Statement Analysis
4 questions
Financial Statement Analysis
The current ratio measures:
- a.Market value
- b.Long-term leverage
- c.Profitability
- d.Short-term liquidity (current assets to current liabilities)✓
Current ratio = current assets / current liabilities, a liquidity measure.
Financial Statement Analysis
A higher debt-to-equity ratio indicates:
- a.Lower risk always
- b.More cash
- c.Higher liquidity
- d.Greater financial leverage and risk✓
More debt relative to equity means higher leverage and financial risk.
Financial Statement Analysis
Gross profit margin equals gross profit divided by:
- a.Equity
- b.Total assets
- c.Sales revenue✓
- d.Net income
Gross margin = gross profit / sales.
Financial Statement Analysis
Inventory turnover measures:
- a.Cash on hand
- b.How many times inventory is sold and replaced in a period✓
- c.Profit per unit
- d.Debt levels
Inventory turnover = COGS / average inventory, showing how fast inventory sells.