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CMA® PART 1 CERTIFIED MANAGEMENT
ACCOUNTANT PRACTICE QUESTION BANK
FINANCIAL PLANNING, PERFORMANCE,
AND ANALYTICS
2026–2027 ACADEMIC YEAR EDITION
---
# TABLE OF CONTENTS
| Section | Topic | Weight | Questions | Page |
|---------|-------|--------|-----------|------|
| **A** | External Financial Reporting Decisions | 15% | 30 | 2 |
| **B** | Planning, Budgeting, and Forecasting | 20% | 40 | 18 |
| **C** | Performance Management | 20% | 40 | 38 |
| **D** | Cost Management | 15% | 30 | 58 |
| **E** | Internal Controls | 15% | 30 | 74 |
| **F** | Technology and Analytics | 15% | 30 | 90 |
---
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SECTION A: EXTERNAL FINANCIAL REPORTING DECISIONS (15%)
## 30 Questions
### Question A-1
**Topic: Financial Statement Presentation**
Which of the following is the primary purpose of presenting comparative financial statements in
an annual report?
A) To comply with Internal Revenue Service requirements for tax filing
B) To allow users to identify trends and evaluate changes in financial position over time
C) To reduce the total number of pages in the annual report
D) To eliminate the need for notes to the financial statements
---
**Correct Answer: B**
**Rationale:** Comparative financial statements present financial information for multiple
periods side-by-side, enabling users to analyze trends, evaluate performance changes, and assess
the entity's financial progress over time. This is a fundamental principle of financial reporting
that enhances the usefulness of financial information for decision-making.
**Distractor Analysis:**
- **A:** Incorrect. The IRS has separate filing requirements; comparative statements are not
primarily for tax compliance.
- **C:** Incorrect. Comparative statements actually increase the length of the report; this is not
their purpose.
,Page 3 of 195
- **D:** Incorrect. Comparative statements do not eliminate the need for notes; notes provide
essential disclosures about accounting policies, contingencies, and other details.
---
### Question A-2
**Topic: Balance Sheet Classification**
A company has a loan payable that matures in 18 months. The company intends to refinance the
loan on a long-term basis and has obtained a financing agreement from a lender that permits
refinancing. Under U.S. GAAP, how should this liability be classified on the balance sheet?
A) As a current liability
B) As a long-term liability
C) As a contra-equity account
D) As an off-balance-sheet item
---
**Correct Answer: B**
**Rationale:** Under U.S. GAAP, a liability may be classified as non-current (long-term) if the
company has both the intent and the ability to refinance the obligation on a long-term basis, and
evidence of this ability exists (such as a financing agreement) before the balance sheet is issued.
The 18-month maturity would otherwise make it current, but the refinancing agreement allows
long-term classification.
**Distractor Analysis:**
, Page 4 of 195
- **A:** Incorrect. While the loan matures within one year (18 months is more than 12 months
but the question tests the refinancing exception), the ability to refinance permits long-term
classification under the exception.
- **C:** Incorrect. A loan payable is a liability, not equity, regardless of classification.
- **D:** Incorrect. The loan must be reported on the balance sheet; it cannot be excluded as off-
balance-sheet.
---
### Question A-3
**Topic: Revenue Recognition**
A software company sells a two-year subscription to its cloud-based platform for $24,000,
collected in advance. The company also provides implementation services valued at $3,000,
which are completed in the first month. Under ASC 606, how much revenue should the company
recognize in the first month?
A) $24,000
B) $3,000
C) $2,000
D) $4,000
---
**Correct Answer: D**
**Rationale:** Under ASC 606, revenue is recognized when performance obligations are
satisfied. The total transaction price of $24,000 includes the subscription ($21,000 allocated over
24 months = $875/month) and implementation services ($3,000 recognized upon completion).
CMA® PART 1 CERTIFIED MANAGEMENT
ACCOUNTANT PRACTICE QUESTION BANK
FINANCIAL PLANNING, PERFORMANCE,
AND ANALYTICS
2026–2027 ACADEMIC YEAR EDITION
---
# TABLE OF CONTENTS
| Section | Topic | Weight | Questions | Page |
|---------|-------|--------|-----------|------|
| **A** | External Financial Reporting Decisions | 15% | 30 | 2 |
| **B** | Planning, Budgeting, and Forecasting | 20% | 40 | 18 |
| **C** | Performance Management | 20% | 40 | 38 |
| **D** | Cost Management | 15% | 30 | 58 |
| **E** | Internal Controls | 15% | 30 | 74 |
| **F** | Technology and Analytics | 15% | 30 | 90 |
---
,Page 2 of 195
SECTION A: EXTERNAL FINANCIAL REPORTING DECISIONS (15%)
## 30 Questions
### Question A-1
**Topic: Financial Statement Presentation**
Which of the following is the primary purpose of presenting comparative financial statements in
an annual report?
A) To comply with Internal Revenue Service requirements for tax filing
B) To allow users to identify trends and evaluate changes in financial position over time
C) To reduce the total number of pages in the annual report
D) To eliminate the need for notes to the financial statements
---
**Correct Answer: B**
**Rationale:** Comparative financial statements present financial information for multiple
periods side-by-side, enabling users to analyze trends, evaluate performance changes, and assess
the entity's financial progress over time. This is a fundamental principle of financial reporting
that enhances the usefulness of financial information for decision-making.
**Distractor Analysis:**
- **A:** Incorrect. The IRS has separate filing requirements; comparative statements are not
primarily for tax compliance.
- **C:** Incorrect. Comparative statements actually increase the length of the report; this is not
their purpose.
,Page 3 of 195
- **D:** Incorrect. Comparative statements do not eliminate the need for notes; notes provide
essential disclosures about accounting policies, contingencies, and other details.
---
### Question A-2
**Topic: Balance Sheet Classification**
A company has a loan payable that matures in 18 months. The company intends to refinance the
loan on a long-term basis and has obtained a financing agreement from a lender that permits
refinancing. Under U.S. GAAP, how should this liability be classified on the balance sheet?
A) As a current liability
B) As a long-term liability
C) As a contra-equity account
D) As an off-balance-sheet item
---
**Correct Answer: B**
**Rationale:** Under U.S. GAAP, a liability may be classified as non-current (long-term) if the
company has both the intent and the ability to refinance the obligation on a long-term basis, and
evidence of this ability exists (such as a financing agreement) before the balance sheet is issued.
The 18-month maturity would otherwise make it current, but the refinancing agreement allows
long-term classification.
**Distractor Analysis:**
, Page 4 of 195
- **A:** Incorrect. While the loan matures within one year (18 months is more than 12 months
but the question tests the refinancing exception), the ability to refinance permits long-term
classification under the exception.
- **C:** Incorrect. A loan payable is a liability, not equity, regardless of classification.
- **D:** Incorrect. The loan must be reported on the balance sheet; it cannot be excluded as off-
balance-sheet.
---
### Question A-3
**Topic: Revenue Recognition**
A software company sells a two-year subscription to its cloud-based platform for $24,000,
collected in advance. The company also provides implementation services valued at $3,000,
which are completed in the first month. Under ASC 606, how much revenue should the company
recognize in the first month?
A) $24,000
B) $3,000
C) $2,000
D) $4,000
---
**Correct Answer: D**
**Rationale:** Under ASC 606, revenue is recognized when performance obligations are
satisfied. The total transaction price of $24,000 includes the subscription ($21,000 allocated over
24 months = $875/month) and implementation services ($3,000 recognized upon completion).
