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IMA CMA-Strategic-Financial-Management Exam Syllabus Topics:

SectionObjectives
Decision Analysis- Performance Measurement and Variance Analysis
- Budgeting and Forecasting Techniques
Professional Ethics- Ethical Decision-Making in Financial Management
Investment Decisions- Investment Appraisal and Selection
- Capital Budgeting Techniques
Corporate Finance- Working Capital Management
- Capital Structure and Cost of Capital
Financial Statement Analysis- Financial Statement Interpretation
- Ratio and Performance Analysis
Risk Management- Enterprise Risk Management
- Financial Risk Identification and Mitigation

IMA CMA Part 2: Strategic Financial Management Sample Questions:

Question 1

FumiSelf is a global manufacturer of consumer-assembled furniture with a business presence in nearly every country. The Vice President of Production was presented with the following information by the Vice President of Finance as of the end of the current quarter.

A. African division is the most efficient in manage its inventory
B. Europe division is the most inefficient in managing its inventory
C. Asian division has the highest days' sales in inventory
D. North American division has the lowest days' sales in Inventory.


Question 2

Your organization is considering implementing an Enterprise Risk Management process. You expect to obtain many benefits from this process. Which of the following is not an expected Benefit?

A. Seizing opportunities.
B. Aligning risk appetite and strategy
C. Reducing operational surprises and losses
D. Eliminating risk response decisions


Question 3

According to the IMA Statement of Ethical Professional Practice, identify and explain the standard(s) that Matthew would violate if he chooses not to report the issue regarding the accounting manager.
Apex Manufacturing lnc. (AMI) is a Canada-based company that manufactures a manufactures and unique part for aircrafts. It has few competitors in the market. The company is exposed to exchange rate risk because about 90% of its products are exported to the U.S, and most of its sales contracts are in U.S. dollars. AMI has the capacity to manufacture 1,500 units of the part per year. For the year just ended. AMI manufactured and sold 1,000 units. The operating results are shown below.

Recently, A new customer made a one-area order of 500 units of the part at $1.200 per unit. The CTO asked the controller to analyze this offer. AMI is considering adjusting its sales price next year in a recent meeting, the CFO suggested to use the market-based approach for pricing decisions, bat the controller insisted that the cost-based approach is more favorable to the company.


Question 4

A company had an operating cycle of 110 days, a cash cycle of 40 days, and an accounts receivable period of so days. The company s inventory period and accounts payable period are

A. inventory period = 70 flays and accounts payable period = 50 flays
B. inventory period = 50 days and accounts payable period = 70 days
C. inventory period = 50 days ana accounts payable period - 150 flays
D. inventory period = 10 days and accounts payable period = 50 days


Question 5

To minimize me risk of a two-stock portfolio, a company should most likely purchase stocks that have

A. negatively correlated expected returns
B. no correlated expected returns
C. positively correlated expected returns
D. equally correlated expected returns


Solutions:

Question 1
Answer: B
Question 2
Answer: D
Question 3
Answer: Only visible for members
Question 4
Answer: B
Question 5
Answer: A

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