Free IMANET CMA Exam Questions

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Total 1336 Questions | Updated On: Nov 12, 2024

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Question 1

Sensitivity analysis is used in capital budgeting to

A : timate a project’s internal rate of return.

B : termine the amount that a variable can change without generating unacceptable results.

C : Simulate probabilistic customer reactions to a new product.

D : entify the required market share to make a new product viable and produce acceptable results.

Answer: B

Question 2

The average collection period for a firm measures the number of days

A : ter a topical credit sale is made until the firm receives the payment.

B : ray pica check to” clear” through the banking system.

C : yond the end of the credit period before atypical customer payment is received.

D : fore a typical account becomes delinquent.

Answer: A

Question 3

In planning and controlling capital expenditures, the most logical sequence is to begin with?

A : alyzing capital addition proposals.

B : king capital expenditure decision.

C : alyzing and evaluating all promising alternatives.

D : Identifying capital addition projects and other capital needs.

Answer: D

Question 4

An interest swap covers a 3-year period with annual payments on a $1 million notional principal

amount. Party X agrees to pay a fixed rate of 8.5% to Party Z, who will in return pay to X a floating

rate equal to the London Interbank Offered Rate (LIBOR) in effect. LIBOR is the rate offered by major

London banks on large dollar deposites. The contract is initiated on January 1, Year 1. The first

payment is due on December 21, Year 1. The following are the floating rates on LIBOR over the 3-

year period:

Time LIBOR

1/1/Year 1 8.00%

1/1/Year 2 9.00%

1/1/Year 3 9.50%

1/1/Year 4 8.50%

What is the net payment made to the party that recognized a net gain on the contract?

A : $0

B : $10,000 to X

C : $ 15,000 to X

D : $15, 000 to Z

Answer: B

Question 5

The statement of income for Dimmell Co. presented below represented the operating result for the

fiscal year just ended. Dimmell had sales of 1,800 tons of product during the current year. The

manufacturing capacity of Dimmell’s facilities is 3.000 tons of product.

The breakeven volume in tons of product for 2002 is ?

A : 400 tons

B : 1,100 tons

C : 900 tons

D : 550 tons

Answer: B

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Total 1336 Questions | Updated On: Nov 12, 2024

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