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US CMA Part 2 Using Financial Information and Accounting — practice questions

Explore 82 free Using Financial Information and Accounting questions in US CMA Part 2 Financial Management. Open each question or exercise to read its content, reference answers and available explanation.

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Using Financial Information and Accounting questions and exercises with answers

Showing questions 1–30 of 82.

Sort each item into assets or debtsRead the answer and worked solution →Put the accounting cycle in orderRead the answer and worked solution →Match each ratio to what it measuresRead the answer and worked solution →Fill in the missing sales figuresRead the answer and worked solution →Flip and match the balance sheet termsRead the answer and worked solution →Split the current from the fixed assetsRead the answer and worked solution →Tap the item that does not belongRead the answer and worked solution →Pick the bigger figure each roundRead the answer and worked solution →Judge each accounting claimRead the answer and worked solution →Tap only the ones that fit the labelRead the answer and worked solution →Fill in the liquidity numbersRead the answer and worked solution →Spot the false statementRead the answer and worked solution →Fix the broken accounting formulaRead the answer and worked solution →Order the road from sales to profitRead the answer and worked solution →Which branch of accounting prepares the external reports used by lenders, suppliers, investors and government agencies?Read the answer and worked solution →A yearly document that describes a firm's financial status and discusses its prospects for the future is called what?Read the answer and worked solution →Independent accountants who serve organizations and individuals on a fee basis are known as what?Read the answer and worked solution →Which responsibility of public accountants consists of reviewing the records used to prepare financial statements?Read the answer and worked solution →Which former member of the largest group of public accounting firms disbanded in 2002 as a result of the Enron scandal?Read the answer and worked solution →Who alone may issue the auditor's opinion on a firm's financial statements?Read the answer and worked solution →Managerial accountants can earn which professional certification by passing an examination?Read the answer and worked solution →The Public Company Accounting Oversight Board has five members. How many of them must hold the CPA designation?Read the answer and worked solution →Under the auditing standards required by the Sarbanes-Oxley Act, how long must audit work papers and documentation for audit reports be kept?Read the answer and worked solution →Which three elements did Brother Luca Pacioli define as the main accounting elements?Read the answer and worked solution →What is the other name for the total amount of investment in a firm minus any liabilities?Read the answer and worked solution →Why must every transaction be recorded as two entries?Read the answer and worked solution →Ledger totals for each account are summarized in a trial balance. What does the trial balance confirm?Read the answer and worked solution →The balance sheet describes the financial condition of a firm over what span?Read the answer and worked solution →In what order are assets listed on a balance sheet?Read the answer and worked solution →Which test decides whether an asset counts as a current asset?Read the answer and worked solution →

Worked practice questions

Sort each item into assets or debts

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Left
Asset
Items
  1. Item
    Cash
    Answer
    Asset
  2. Item
    Accounts payable
    Answer
    Liability
  3. Item
    Notes payable
    Answer
    Liability
  4. Item
    Inventory
    Answer
    Asset
  5. Item
    Accrued expenses
    Answer
    Liability
  6. Item
    Bakery equipment
    Answer
    Asset
  7. Item
    Notes receivable
    Answer
    Asset
  8. Item
    Taxes payable
    Answer
    Liability
Right
Liability
Instructions
Swipe left for something the firm owns, right for something the firm owes.
_Source: OpenStax Introduction to Business, section 14.4 The Balance Sheet_

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Put the accounting cycle in order

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Steps
  1. Analyze documents
  2. Record in journal
  3. Post to ledgers
  4. Take trial balance
  5. Prepare statements
  6. Analyze and decide
Instructions
Tap the six steps in the order a transaction travels through them.
_Source: OpenStax Introduction to Business, section 14.3 Basic Accounting Procedures_

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Match each ratio to what it measures

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Matching pairs
  1. Left
    Current ratio
    Right
    Current assets over current liabilities
  2. Left
    Acid-test ratio
    Right
    Liquidity with inventory taken out
  3. Left
    Net profit margin
    Right
    Net profit as a share of net sales
  4. Left
    Return on equity
    Right
    Net profit measured against owner funds
  5. Left
    Earnings per share
    Right
    Net profit split across shares issued
  6. Left
    Inventory turnover
    Right
    Cost of goods sold over average stock
  7. Left
    Debt-to-equity
    Right
    Total liabilities over owner funds
Instructions
Tap a ratio, then tap the calculation behind it.
_Source: OpenStax Introduction to Business, section 14.7 Analyzing Financial Statements_

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