IMA CMA Strategic Financial Management Practice Exams
Last updated on Oct 22,2026- Exam Code: CMA Strategic Financial Management
- Exam Name: CMA Part 2: Strategic Financial Management Exam
- Certification Provider: IMA
- Latest update: Oct 22,2026
With respect to the COSO Enterprise Risk Management Integrated Framework (2017), which one of the following statements is true regarding Governance & Culture and Performance?
- A . They are both components of the Integrated Framework
- B . Governance & Culture is a principle and Performance is a component of the Integrated Framework
- C . They are both principles of the Integrated Framework
- D . Performance is a principle and Governance & Culture is a component of the Integrated Framework
Amy Curtin sells used cars of a reliable bona Curtin has no knowledge of me history or any or the specific cars She believes that the brand is reliable, and is considering whether it is acceptable to offer only this general Information rather than specific information regarding me cars when trying to complete each sale The company has always preferred to make the sale and worry about any warranty issues later and there are no legal disclosure requirements in their jurisdiction Curtin considers herself to be an ethical person but she does not want to lose out on any potential sales of vehicles that are most likely in good mechanical condition.
Which one of the following statements best represents what Curtin should consider related to the meaning of ethics?
- A . Ethics is driven by compliance with a set of regulations or laws
- B . Ethics is about being consistent with the ethical tone set by the organization
- C . Ethics is about the integrity of the decision making process to resolve issues
- D . Ethics is about decisions where the relevant policies are informal and not documented
CORRECT TEXT
Identify and explain the type of acquisition that would occur if Guda acquires Blue Moon.
Essay
Food Depot Ltd, (FDL) is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants, FDL has been profitable in recent years and has a very strong cash position. FDL’s newest division. Food_TO-Go is an online meal ordering and delivery platform acquired by FDL two year ago.
In 20X7, sales for the entire company were $1 billion, with 50% of the business coming from the Airline Catering division. FDL is the country ‘s leading airline catering services provider and control 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
The Food-To-division only contribution 5% of FDL’s total sales in 20X7 and is far behind in competing for marketing for market share of the online meal ordering and delivery industry, it is estimated that Food-To-Go’s sales were only 20% of the industry leader’s sales. However, the outlook for the online meal ordering and delivery services industry is bright.
The compound annual growth rate of the industry since it started three years ago was 50%.
It is estimated the rapid growth of the industry will continue in the foreseeable future.
Susan Willey, the head of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company. Wiley argues that ber division bad the highest ROI in 20X7, and it deserves more capital finding. FDL’s requested rate of return is 12%.
The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follow (in $ millions)
Slam-Dunk Shoes has 5,000 pairs or damaged shoes in inventory. The cost of these shoes
was $51,000. in their present condition, the shoes may be sold at clearance prices for
$29,000 Slam-Dunk can have the shoes repaired at a cost of $77,000 after which they can
be sold for $100,000.
What is the opportunity cost of selling the shoes in their present damaged condition?
- A . $23.000
- B . $71.000
- C . $77, 000
- D . $100, 000
CORRECT TEXT
Identify and explain two risks that Guda may face after it acquires Blue Moon.
Essay
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.
Which one of the following would best ensure the effectiveness of an organization s code of conduct?
- A . Hold periodic employee workshops that illustrate expected behaviors in business situations in which ethical issues may arise
- B . Incorporate ethics training for all new employees as a standard part of the orientation process
- C . Distribute the document internally to staff and externally to suppliers and distributors to increase awareness of ethics considerations
- D . Require executives and managers to take individual responsibility for practicing ethical behavior
CORRECT TEXT
Calculate QDDs financial leverage ratio show your calculations Essay Quality Digital Design (QDD) Inc is a public-traded technology company Selected financial data of QDD for the prior year are as follows
QDD’s stock was trading at $160 per share at the beginning of the yea: and at $176 per share by the end of the year. The company paid dividends of S5 per share. The company "s stock had a beta of 1 4 The stock market provided a total return of 12% last year, well above the 3°o risk free rate of return
QDD is considering the issuance of $200 million of bonds to fund the repurchase of $200 million of its stock. QDD is evaluating the bond, including its term structure, maturity, and whether it should be callable obtaining the lowest coupon interest is an important objective of QDD. The CFO has estimated that sales for the current year would remain the same as last year and the new bond would add S12 million in annual interest payments
A group of nations is considering me formation of a cartel associated with the manufacture and distribution of a product that they each export.
Which one of the following outcomes would not be consistent with me formation of a carter?
- A . An increase in the output of the manufactured product
- B . An increase in the selling price of the manufactured product
- C . An increase m the net profits for each of the individual cartel members
- D . A selling price where marginal revenue equals marginal cost
CORRECT TEXT
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.
Below is the income statement and balance sheet for a retail corporation.
What is the corporation’s return on equity in Year 2?
- A . 23%
- B . 26%
- C . 39%
- D . 48%