Objective type questions for cma inter dec 2013

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Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 Dear Sir,

Pls. give objective type questions & answers for both the groups of CMA-Inter exam'Dec 2013

Thanks & Regards.

Querist : Anonymous

Querist : Anonymous (Querist)

26 October 2013 Dear Sir,

Pls. give objective type questions & answers for both the groups of CMA-Inter exam'Dec 2013

Thanks & Regards

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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09 August 2024 Here are some sample objective-type questions and answers for the CMA Intermediate (now known as CMA Foundation and CMA Inter) exam from December 2013. Note that these questions are for illustrative purposes and may not exactly match those from the exam, but they cover common topics for CMA Intermediate.

### **Group 1:**

**1. Financial Accounting**

**Q1:** What is the primary objective of financial accounting?
- A) To provide information for management decisions
- B) To determine the tax liabilities of the business
- C) To prepare financial statements for external stakeholders
- D) To assess the internal control systems of the company

**Answer:** C) To prepare financial statements for external stakeholders

**Q2:** Which accounting principle states that revenue should be recognized when earned?
- A) Matching Principle
- B) Revenue Recognition Principle
- C) Historical Cost Principle
- D) Conservatism Principle

**Answer:** B) Revenue Recognition Principle

**2. Cost Accounting**

**Q1:** In cost accounting, which method is used to allocate fixed overheads to products?
- A) Direct costing
- B) Absorption costing
- C) Marginal costing
- D) Standard costing

**Answer:** B) Absorption costing

**Q2:** Which of the following is not considered a variable cost?
- A) Direct materials
- B) Direct labor
- C) Rent of factory building
- D) Production supplies

**Answer:** C) Rent of factory building

**3. Laws and Ethics**

**Q1:** Under the Companies Act, 2013, who is responsible for the management of the company's affairs?
- A) Shareholders
- B) Directors
- C) Auditors
- D) Company Secretary

**Answer:** B) Directors

**Q2:** Which of the following is true about insider trading?
- A) It is legal if the insider discloses the information to the public
- B) It is legal if the insider does not trade on the information
- C) It is illegal if the insider trades based on non-public material information
- D) It is legal for directors of the company

**Answer:** C) It is illegal if the insider trades based on non-public material information

### **Group 2:**

**1. Financial Management**

**Q1:** What is the primary goal of financial management?
- A) To maximize sales revenue
- B) To maximize shareholder wealth
- C) To minimize the cost of production
- D) To ensure compliance with regulatory requirements

**Answer:** B) To maximize shareholder wealth

**Q2:** The Net Present Value (NPV) method is used to:
- A) Determine the profitability of an investment
- B) Calculate the payback period of a project
- C) Estimate future cash flows
- D) Evaluate the liquidity position of a company

**Answer:** A) Determine the profitability of an investment

**2. Operations Management**

**Q1:** Which inventory management technique is based on the principle of just-in-time?
- A) Economic Order Quantity (EOQ)
- B) First-In-First-Out (FIFO)
- C) Just-In-Time (JIT)
- D) Last-In-First-Out (LIFO)

**Answer:** C) Just-In-Time (JIT)

**Q2:** In a production process, what does the term 'throughput' refer to?
- A) The total cost of production
- B) The total output produced per unit time
- C) The total input used in production
- D) The time taken to produce one unit of product

**Answer:** B) The total output produced per unit time

**3. Business Economics**

**Q1:** In the short run, a firm should continue to produce if:
- A) Total Revenue is greater than Total Cost
- B) Total Revenue is less than Total Variable Cost
- C) Total Revenue is greater than Total Fixed Cost
- D) Total Cost is greater than Total Variable Cost

**Answer:** A) Total Revenue is greater than Total Cost

**Q2:** What does the term 'elasticity of demand' measure?
- A) The responsiveness of supply to a change in price
- B) The responsiveness of demand to a change in income
- C) The responsiveness of demand to a change in price
- D) The responsiveness of supply to a change in demand

**Answer:** C) The responsiveness of demand to a change in price

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These questions cover a range of topics commonly tested in the CMA Intermediate exam. For a comprehensive preparation, it's recommended to review the latest study materials and past papers.

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