Online Access Free CMA-Strategic-Financial-Management Exam Questions

A management accountant overheard the company's procurement manager discussing a kickback payment for one of the company s recent projects. The procurement manager promised to pay a share to the other person II the arrangement was kept confidential According to the IMA Statement of Ethical Professional Practice which one of the following is the most appropriate action for the management accountant to take?

• A.Report the information directly to a nigh-level company executive since it is a serious matter
• B.Call the company's ethics helpline and report the matter anonymously
• C.Discuss the incident with his or her own attorney and consider disassociating from the company
• D.Take no action since the incident is not related to the accounting department

Explain one reason each Tot and against issuing bonds with a call feature Essay Quality Digital Design (QDD) Inc is a public-traded technology company Selected financial data of QDD for the prior year are as follows

QDD's stock was trading at $160 per share at the beginning of the yea: and at $176 per share by the end of the year. The company paid dividends of S5 per share. The company "s stock had a beta of 1 4 The stock market provided a total return of 12% last year, well above the 3% risk free rate of return QDD is considering the issuance of $200 million of bonds to fund the repurchase of $200 million of its stock.
QDD is evaluating the bond, including its term structure, maturity, and whether it should be callable obtaining the lowest coupon interest is an important objective of QDD. The CFO has estimated that sales for the current year would remain the same as last year and the new bond would add S12 million in annual interest payments

An accounting manage' is deciding which performance measurement tool would be most appropriate to compare firms within their company s industry given that the firms vary in size significantly. Which one of the following analysis methods would be the most appropriate?

• A.Cash flow analysis
• B.Sensitivity analysis
• C.Vertical analysis
• D.Horizontal analysis

The internal audit division of a company is investigating a potential fraud in the Accounts Payable department Someone in the department has been writing checks to fictitious vendors and collecting the cash The primary suspect Is an employee who has own with the company for twelve years and recently lost his Did for promotion to Director of Accounts Payable a position which would have given mm a 25% salary increase This employee has been heard complaining to several other employees in the department that he was cheated out of his raise. Which one of the following elements of the fraud triangle is this employee exhibiting?

• A.Rationalization
• B.Motive
• C.Pressure
• D.Opportunity

A company can by identical raw materials from four suppliers. Each supplier offers a different term of sale.
Which one of the following terms of sale has the highest effective annual interest rate if the company does not take the cash discount?

• A.1/30 net 45
• B.1/10, net 45
• C.1/30, net 90
• D.1/10, net 90