Amazon
Avaya
Checkpoint
Cisco®
CompTIA
CrowdStrike
EC-Council
EXIN
Fortinet
Google
ISC
ISC2
ITIL®
Juniper
Microsoft
Okta
Palo Alto Networks
Salesforce
All Vendors
  1. Home
  2. Financial
  3. CMA

Financial CMA Exam (page: 43)
Financial Certified Management Accountant
Updated on: 25-Dec-2025

Viewing Page 43 of 270
CMA PDF 1336 Questions

Details: Risk Analysis and Real Options 20

Which one of the following statements concerning cash flow determination for capital budgeting purposes is not correct?

  1. Tax depreciation must be considered because it affects cash payments for taxes.
  2. Book depreciation is relevant because it affects net income.
  3. Sunk costs are not incremental flows and should not be included.
  4. Networking capital changes should be included in cash flow forecasts.

Answer(s): B

Explanation:

Tax depreciation is relevant to cash flow analysis because it affects the amount of income taxes that must be paid. However, book depreciation is not relevant because it does not affect the amount of cash generated by an investment.




Details: Risk Analysis and Real Options 20

A depreciation tax shield is

  1. An after-tax cash outflow.
  2. A reduction in income taxes.
  3. The cash provided by recording depreciation.
  4. The expense caused by depreciation.

Answer(s): B

Explanation:

A tax shield is something that will protect income against taxation. Thus, a depreciation tax shield is a reduction in income taxes due to a company's being allowed to deduct depreciation against otherwise taxable income.




Details: Risk Analysis and Real Options 20

What is a challenge that the long-term aspect of capital budgeting presents to the management accountant?

  1. Activity can be tracked for a single accounting period.
  2. Capital projects affect multiple accounting periods.
  3. The flexibility of the capital budgeting decision.
  4. Freedom of the organization's financial planning.

Answer(s): B

Explanation:

Capital budgeting is the process of planning and controlling investments for long-term projects. It is this long-term aspect of capital budgeting that presents the management accountant with specific challenges. Most financial and management accounting topics concern tracking and reporting activity for a single accounting or reporting cycle, such as one month or one year. By their nature, capital projects affect multiple accounting periods and will constrain the organization's financial planning well into the future. Once made, capital budgeting decisions tend to be relatively inflexible.




Details: Risk Analysis and Real Options 20

Which of the following is not a category of relevant cash flows?

  1. Annual net cash flows.
  2. Project termination cash flows.
  3. Incremental cash flows.
  4. Net initial investment.

Answer(s): C

Explanation:

Relevant cash flows are a much more reliable guide when judging capital projects, since only they provide a true measure of a project's potential to affect shareholder value. The relevant cash flows can be divided into three categories: (1) net initial investment, (2) annual net cash flows, and (3) project termination cash flows. An incremental cash flow is the difference in cash received or disbursed resulting from selecting one option instead of another. It is not a category of relevant cash flows.




Details: Risk Analysis and Real Options 20

The capital budgeting process contains several stages. At which stage are financial and non-financial factors addressed?

  1. Identification and definition.
  2. Selection.
  3. Search.
  4. Information-acquisition.

Answer(s): D

Explanation:

During the information-acquisition stage of the capital budgeting process, quantitative financial factors are given the most scrutiny. These include initial investment and periodic cash inflow. Nonfinancial measures, both quantitative and qualitative, are also identified and addressed. Examples include the need for additional training on new equipment and uncertainty about technological developments and competitors' actions.



Viewing Page 43 of 270



Share your comments for Financial CMA exam with other users:

suresh 12/16/2023 10:54:00 PM

nice document
Anonymous


Wali 6/4/2023 10:07:00 PM

thank you for making the questions and answers intractive and selectable.
UNITED STATES


Nawaz 7/18/2023 1:10:00 AM

answers are correct?
UNITED STATES


das 6/23/2023 7:57:00 AM

can i belive this dump
INDIA


Sanjay 10/15/2023 1:34:00 PM

great site to practice for sitecore exam
INDIA


jaya 12/17/2023 8:36:00 AM

good for students
UNITED STATES


Bsmaind 8/20/2023 9:23:00 AM

nice practice dumps
Anonymous


kumar 11/15/2023 11:24:00 AM

nokia 4a0-114 dumps
Anonymous


Vetri 10/3/2023 12:59:00 AM

great content and wonderful to have the answers with explanation
UNITED STATES


Ranjith 8/21/2023 3:39:00 PM

for question #118, the answer is option c. the screen shot is showing the drop down, but the answer is marked incorrectly please update . thanks for sharing such nice questions.
Anonymous


Eduardo Ramírez 12/11/2023 9:55:00 PM

the correct answer for the question 29 is d.
Anonymous


Dass 11/2/2023 7:43:00 AM

question no 22: correct answers: bc, 1 per session 1 per page 1 per component always
UNITED STATES


Reddy 12/14/2023 2:42:00 AM

these are pretty useful
Anonymous


Daisy Delgado 1/9/2023 1:05:00 PM

awesome
UNITED STATES


Atif 6/13/2023 4:09:00 AM

yes please upload
UNITED STATES


Xunil 6/12/2023 3:04:00 PM

great job whoever put this together, for the greater good! thanks!
Anonymous


Lakshmi 10/2/2023 5:26:00 AM

just started to view all questions for the exam
NETHERLANDS


rani 1/19/2024 11:52:00 AM

helpful material
Anonymous


Greg 11/16/2023 6:59:00 AM

hope for the best
UNITED STATES


hi 10/5/2023 4:00:00 AM

will post exam has finished
UNITED STATES


Vmotu 8/24/2023 11:14:00 AM

really correct and good analyze!
AZERBAIJAN


hicham 5/30/2023 8:57:00 AM

excellent thanks a lot
FRANCE


Suman C 7/7/2023 8:13:00 AM

will post once pass the cka exam
INDIA


Ram 11/3/2023 5:10:00 AM

good content
Anonymous


Nagendra Pedipina 7/13/2023 2:12:00 AM

q:32 answer has to be option c
INDIA


Tamer Barakat 12/7/2023 5:17:00 PM

nice questions
Anonymous


Daryl 8/1/2022 11:33:00 PM

i really like the support team in this website. they are fast in communication and very helpful.
UNITED KINGDOM


Curtis Nakawaki 6/29/2023 9:13:00 PM

a good contemporary exam review
UNITED STATES


x-men 5/23/2023 1:02:00 AM

q23, its an array, isnt it? starts with [ and end with ]. its an array of objects, not object.
UNITED STATES


abuti 7/21/2023 6:24:00 PM

cool very helpfull
Anonymous


Krishneel 3/17/2023 10:34:00 AM

i just passed. this exam dumps is the same one from prepaway and examcollection. it has all the real test questions.
INDIA


Regor 12/4/2023 2:01:00 PM

is this a valid prince2 practitioner dumps?
UNITED KINGDOM


asl 9/14/2023 3:59:00 PM

all are relatable questions
CANADA


Siyya 1/19/2024 8:30:00 PM

might help me to prepare for the exam
Anonymous