Certified Management Accountant Exam UPDATED QUESTIONS AND CORRECT ANSWERS

Certified Management Accountant Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
Initial entry for installment method - CORRECT ANSWER Cash (down pmt)

Installment Receivable (yr 1 pmt)

Cost of Installment sales (cost)

*********Inventory (cost)

*********Installment Sales (total)



Installment Year End

for receivables - CORRECT ANSWER Installment Sales (total)

******Cost of Installment sales (cost)

****** Deferred GP (Total-cost)

deferred GP year 1 (GP%*amount paid)

******Realized GP



***GP %= (total-cost)/total



Cost recovery method Year One

for receivables - CORRECT ANSWER Receivable (total)

Inventory (cost)

Deferred GP (difference)

Cash (paid)

Receivable



Cost Recovery Year two

for receivables - CORRECT ANSWER cash (yr 2 pmt)

deferred GP (cumulative amt over cost collected to be realized as GP)

********Receivable (amt paid)

, ******** Realized GP (same as above)

Uncollectable:

Deferred GP

*********Recievable



% of completion method

long term construction - CORRECT ANSWER YR1:

Construction in progress (cost incurred YR1)

*****Cash

Construction in Progress **

*******Construction GP

**(cost yr 1/total expected cost)Total GP



Last Year of project:

Construction in progress (cost incurred last year)

********Cash



Cash (total amt paid for work)

****Construction in progress (difference)

****Construction GP (total GP-amt already recognized)



Completed Contract

for long term construction



(can't be used for IFRS) - CORRECT ANSWER YR 1:

construction in progress (costs yr 1)

Cash

**don't recognize GP



Last Year of Project:

Construction in progress (costs last yr)