CMA Part 1 - Section A
🇬🇧
In English
In English
Practice Known Questions
Stay up to date with your due questions
Complete 5 questions to enable practice
Exams
Exam: Test your skills
Test your skills in exam mode
Learn New Questions
Manual Mode [BETA]
The course owner has not enabled manual mode
Specific modes
Learn with flashcards
Complete the sentence
Listening & SpellingSpelling: Type what you hear
multiple choiceMultiple choice mode
SpeakingAnswer with voice
Speaking & ListeningPractice pronunciation
TypingTyping only mode
CMA Part 1 - Section A - Leaderboard
CMA Part 1 - Section A - Details
Levels:
Questions:
100 questions
| 🇬🇧 | 🇬🇧 |
| The process of reporting the results and effects of the financial transactions a business undertakes | Financial Reporting |
| The average time between the acquisition of materials or services and their final cash realization | Operating Cycle |
| What is operating cycle duration? | Later between one year or business normal operating cycle |
| Accounting for treasury stock where the par value of the repurchased shares is debited directly to common stock account and the remaining purchase price to APIC | Constructive retirement method |
| Provides users with information to help them predict amounts, timing, and uncertainty of (prospects for) future cash flows | Income Statement |
| Represents income/loss that is NOT expected to continue in the future | Income/Loss from discontinued operation |
| Allocation of tax among income from continuing operations, discontinued operations, and accumulated OCI | Intra-period tax allocation |
| A movement that emphasizes corporate reporting on non-financial information relating to an organization’s corporate citizenship | Integrated reporting |
| Focuses on organizations’ impacts on society | Corporate Social Responsibilit |
| Focuses on organizations’ meeting the needs of the present without compromising the ability of future generations to meet their own needs | Sustainable Development |
| Promotes communication about value creation as the next step in the evolution of corporate reporting. | International Integrated Reporting Council (IIRC) |
| The active consideration by an organization of the relationship between its various operating and functional units and the capitals that the organization uses or affects | Integrated Thinking |
| Sustainability Accounting Standards Board (SASB) | Develops and maintains reporting standards that enable business to identify, manage, and communicate financially-material sustainability information to their investors |
| Prices of goods/services that are dependent on future events | Variable consideration |
| Factor assumes the risk of any credit losses | Factoring withOUT recourse |
| Seller still has the risk of any credit losses (will record recourse liability/obligation account) | Factoring with recourse |
| Selling more than the purchase made during the period | LIFO Liquidation |
| Inventory count frequency | Annually |
| In lower of Cost or Market (LCM), market is equal to : | Middle value among Ceiling, Current Replacement Cost, Floor |
| In lower of Cost or Market (LCM), Ceiling, Current Replacement cost and floor equals: | Ceiling: NRV, Floor: NRV - Profit Margin, Current replacement cost: Cost to purchase the inventory |
| Option to classify security as FVTIS where it should be reported otherwise | Fair Value option (debt and equity) |
| A legal entity that is financially controlled by one or more entities that do not hold majority voting interest. | Variable Interest Entity |
| Parent in VIE | Primary Beneficiary |
| Interest income earned on invested borrowed fund should? | Not be deducted or offset with interest expense incurred from the same borrowed fund under USGAAP |
| When does impairment of PPE is recognized? | When CV is greater than the undiscounted future CF |
| When does impairment of PPE is recognized under IFRS? | When CV is greater than the recoverable amount |
| Under IFRS, recoverable amount is equal to | Higher of FV less cost to sell or Value in Use |
| Value in use is equal to | PV of future CF |
| Tax allocation between periods | Inter-period Tax Allocation (temporary differences) |
| Rate used for discounting lease transactions | Implicit rate known by lessor |
| Payments made by the lessee that vary because of changes in facts or circumstance subsequent to the commencement of the lease | Variable lease payments |
| Leases with lease term of not more than 12 months | Short term lease |
| Capital stock + APIC | Contributed Capital |
| Issued capital less treasury stocks | Outstanding shares |
| Small stock dividend is | Stock dividends which is less than 25% of total outstanding shres |
| When does a PO is satisfied? | When the customer obtains control of the asset, the asset is goods or services transferred to the customer. |
| Type of contract asset where PO is fully satisfied | Unconditional contract asset |
| Type of contract asset where PO is partially satisfied or must satisfy another obligation before it can invoice customer | Conditional contract asset |
| Amount of consideration that the company expects to be entitled | Transaction Price |
| The customer simultaneously receives and consumes benefits provided by the company’s performance as the company is performing its obligations | Subscription revenue |
| Company’s performance create or enhance an asset such as work in process that the customer controls as the work is being done | Work in progress revenue |
| Accounting concept where equity in enterprise is what remains after the economic obligations of the enterprise are deducted from its economic resources | Proprietary Theory |
| Associating cause and effect accounting concept | Matching principle |
| Share-based payment where the company entitles employees to cash payments calculated by references to increase in the market prices of shares | Share appreciation rights |
| Share-based payment where the company distributes shares to employees in exchange of their services | Share ownership plans |
| CF provides information about an entity’s activities in generating cash through | Operations to repay debt, distribute dividends, or reinvest |
| Exists when the parties approve a change in (1) the scope or (2) price of contract | Contract modification |
| The price at which an entity would sell a promised good / services separately | Standalone selling price |
| Most accurate inventory cost flow method | Specific identification |
| When to recognize contingency? | -When it is PROBABLE and reasonably estimated |
| Lease receivable = | PV of lease payments + PV of guaranteed residual value + PV of Variable consideration |
| Net investment = | FV of the leased asset = Lease receivable + PV of unguaranteed residual value |
| Single maturity bond | Term bond |
| Series maturity bond | Serial bond |
| Bond payable from specific revenue sources | Revenue bond |
| Bond backed by specific asset | Mortgage bond |
| Unsecured bond | Debenture Bond |
| Bond guaranteed by third party | Guaranty Bond |
| Bond secured by financial Asset | Collateral Trust Bond |
| Bond secured by a movable equipment | Equipment trust bond |
| Bond interest dependent on market | Variable / Floating bond |
| Bond with no stated interest rate | Zero-coupon / deep discount bond |
| Redeemable bond | Callable bond |
| Bond which can be converted to equity securities | Convertible bond |
| Reports the effects of transactions and other events and circumstances even if the resulting cash flows occur in a different period | Accrual accounting |
| STOCK dividends payable is classified under BS as | Equity account |
| The best indicator of ability to remain solvent over the long term | Operating activities |
| Effect of premium on bonds payable on interest expense | Decrease interest expense |
| The best evidence of a standalone price is the | Observable price |
| Sales to customer supported by note is classified under | Other receivables, NOT trade receivable |
| What is the default method for inventory accounting method? | Periodic method |
| FV of investment should be based on | IDENTICAL investment, NOT similar investment nor pv of cash flows |
| New cost of reclassifying investment from AFS to trading or vice versa is the | FV at the time of reclassification |
| Group and composite depreciation methods is same with | Straight-line depreciation for an aggregate of assets |
| When a title passes to the lessee depreciation of ROU is based on | Estimated useful life |
| When the equipment will be transferred to the lessee, ROU should be recorded based on | PV of MLP, NOT at FV of the asset |
| A prerequisite to integrated reporting | Integrated thinking |
| Objective of IR Framework is to | Achieve financial well-being and sustainable expansion through integrated thinking and integrated reporting |
| All of its lists should be addressed in the integrated report | Content elements |