CPA Management Accounting - MA Exam Practice Test
Question 1
At 30 April 2009, the book value of the net assets of Emor was $12.5 million, and the economic value was $17.825 million.
The net operating profit after tax for the year was $3,428,554. The budgeted return on investment for the year was 16.5%, and the cost of capital is estimated to be 12%.
What is the company's economic value added (EVA) for the year?
The net operating profit after tax for the year was $3,428,554. The budgeted return on investment for the year was 16.5%, and the cost of capital is estimated to be 12%.
What is the company's economic value added (EVA) for the year?
Correct Answer: B
Question 2
The annual salary paid to a business's financial accountant would best be described as:
Correct Answer: D
Question 3
Budgeted sales of X for December are 18,000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for December are budgeted to be 15,000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check. The production budget for X for December, in units, is:
Correct Answer: C
Question 4
Which of the following items can berecognizedas intangible assets in an entity's financial statements? i) Internally generated goodwill ii) Purchased goodwill iii) Reputation
Correct Answer: A
Question 5
Which of the following statements is NOT correct about the Kaizen philosophy?
Correct Answer: A
Question 6
On 1 December 2009 Reon Co acquired a non-current asset at a cost of $318,000. The purchase was financed through a six year finance lease. Under the lease, an initial payment of $71,000 was made on 1 December 2009. Five further payments of $71,000 are required on 1 December each year, commencing 1 December 2010. Reon uses the sum of digits method to allocate interest to accounting periods.
How should the total lease liability be reported in the statement of financial position at 30 November 2010?
How should the total lease liability be reported in the statement of financial position at 30 November 2010?
Correct Answer: A
Question 7
A recent variance report includes an adverse materials usage variance and afavorablelaborefficiency variance.
The following have been suggested as possible reasons for these variances:
i) Better quality materials than standard were purchased, requiring additional handling procedures
ii) Thelaborforce was paid a bonus based on production volume
Which of the above statements are possible explanations for these variances?
The following have been suggested as possible reasons for these variances:
i) Better quality materials than standard were purchased, requiring additional handling procedures
ii) Thelaborforce was paid a bonus based on production volume
Which of the above statements are possible explanations for these variances?
Correct Answer: B
Question 8
Hui is responsible for all aspects of performance of the retail outlet which she manages, with the exception of investment.
All investment decisions are made by the head office management team.
What type of responsibility centre is Hui accountable for?
All investment decisions are made by the head office management team.
What type of responsibility centre is Hui accountable for?
Correct Answer: D
