US CMA Exam

Sample MCQ Question

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The revenue recognition principle dictates that all revenue should be
recognized when

A) Cash is received

B) At the end of accounting period

C) When the performance obligation is met

D) When interest is paid

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In an agency transaction:
a. Only the revenue from sale is recognised
b. Revenue from sale net of commission is recognised
c. Commission is added to the sale value and the total is recognised
d. Only commission is recognised
e. None of the above

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Instalment sales for a period : $750,000
Cost of the above sales : $500,000
Cash received on the above sales: $150,000
What is the amount of the Deferred Gross Profit carried in the B/S ?

a. $ 250,000
b. $ 50,000
c. $ 200,000
d. $ 600,000

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A, the chief financial officer is considering splitting the company’s stock, which
is currently selling at $60.00 per share.The stock currently pays a $1.00 per
share dividend. If the split is two-for-one, A may expect the post split price to
be :

a. exactly $30.00, regardless of dividend policy.

b. greater than $30.00, if the dividend is changed to $0.45 per new share
c. greater than $30.00, if the dividend is changed to $0.55 per new share.
d. less than $30.00, regardless of dividend policy.

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