CMA Exam Practice Questions

To provide candidates with a brief view of some of the types of questions on the CMA® (Certified Management Accountant) exam, below are five questions – with correct answers and explanations for each.

You can also check out these additional practice multiple-choice and essay questions (in PDF format) and try the interactive practice quiz, available on the IMA® (Institute of Management Accountants) website, to test your skills and expertise.

CMA Exam Part 1:

1. The relevant range refers to the activity levels over which:

  1. cost relationships hold constant.
  2. costs fluctuate.
  3. production varies.
  4. relevant costs are incurred.

Correct answer: a. The relevant range is the band of activity or volume over which certain cost relationships such as fixed costs remain valid.


2. An analyst prepared a forecast using newly developed system features. The analyst recently left the company, and her replacement was unable to understand how to use these system functionalities. In accordance with system development life cycle (SDLC) best practices, which one of the following controls would have prevented this situation from occurring?

  1. End-user computing efforts are outlined.
  2. Documentation standards and procedures are developed.
  3. Backup activities and requirements are put into place.
  4. Changes made to the system are monitored and evaluated.

Correct answer: b. The control that would have best prevented this situation is clear documentation standards and procedures have been developed. This process is initiated in the “physical design” phase of the SDLC.


CMA Exam Part 2:

3. The acid test ratio shows the ability of a company to pay its current liabilities without having to:

  1. reduce its cash balance.
  2. borrow additional funds.
  3. collect its receivables.
  4. liquidate its inventory.

Correct answer: d. The acid test (quick) ratio does not include inventory in the calculation of current assets and, therefore, measures debt-paying ability without liquidating inventory.


4. Which one of the following best describes the record date as it pertains to common stock?

  1. Four business days prior to the payment of a dividend.
  2. The 52-week high for a stock published in The Wall Street Journal.
  3. The date that is chosen to determine the ownership of shares.
  4. The date on which a prospectus is declared effective by the Securities and Exchange Commission.

Correct answer: c. The record date, set when a dividend is declared, is the date on which an investor must be a shareholder in order to be entitled to receive the upcoming dividend.


5. If the present value of expected cash inflows from a project equals the present value of expected cash outflows, the discount rate is the

  1. payback rate.
  2. internal rate of return.
  3. accounting rate of return.
  4. net present value rate.

Correct answer b. The internal rate of return is the discount rate that equates the present value of future net cash flows from an investment project with the project’s initial cash outflow.