CMCA Study Guide ACTUAL UPDATED
Exam Questions and CORRECT Answers
FDIC - CORRECT ANSWER - Federal Deposit Insurance Corporation; guarantees investors'
deposits in member institutions
Fund reporting method - CORRECT ANSWER - Prepares separate columns for operating,
reserve, and any special funds
GAP - CORRECT ANSWER - Generally Accepted Accounting Principles; provide
uniformity among reports from different organizations
Investments - CORRECT ANSWER - Purchase of anything with money value for generating
additional money over time
Investment yield - CORRECT ANSWER - Return received on the investment
Liabilities - CORRECT ANSWER - Consist of what is owed to others or collected in advance
Members' equity - CORRECT ANSWER - Called the fund balance under the fund method of
reporting; equals the difference between assets and liabilities
Modified cash basis of accounting - CORRECT ANSWER - Records income and expenses on
a cash basis with selected items recorded on an accrual basis
Net income - CORRECT ANSWER - Amount left after deducting expenses from income
Net loss - CORRECT ANSWER - Occurs when expenses are greater than income
Exam Questions and CORRECT Answers
FDIC - CORRECT ANSWER - Federal Deposit Insurance Corporation; guarantees investors'
deposits in member institutions
Fund reporting method - CORRECT ANSWER - Prepares separate columns for operating,
reserve, and any special funds
GAP - CORRECT ANSWER - Generally Accepted Accounting Principles; provide
uniformity among reports from different organizations
Investments - CORRECT ANSWER - Purchase of anything with money value for generating
additional money over time
Investment yield - CORRECT ANSWER - Return received on the investment
Liabilities - CORRECT ANSWER - Consist of what is owed to others or collected in advance
Members' equity - CORRECT ANSWER - Called the fund balance under the fund method of
reporting; equals the difference between assets and liabilities
Modified cash basis of accounting - CORRECT ANSWER - Records income and expenses on
a cash basis with selected items recorded on an accrual basis
Net income - CORRECT ANSWER - Amount left after deducting expenses from income
Net loss - CORRECT ANSWER - Occurs when expenses are greater than income
