Certified Management Accountant Exam Part One

1



Certified Management Accountant Exam
Part One



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)

1

, 2


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
2

, 3




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)
Cash
Cash (total amount paid for work)
Construction in progress (difference)
Construction GP (total GP)


Factoring Entry and Calculation - -Correct Answer-Amt of receivables
(reserve)
(factor's fee)
=amt accruing
3