CMA Exam Review Questions and
Answers Updated 2026
IMA'sMOverarchingMPrinciplesM-MAnswerM1.MHonesty
2.MFairness
3.MObjectivity
4.MResponsibility
IMA'sMFourMStandardsM-MAnswerM1.MCompetence
2.MConfidentiality
3.MIntegrity
4.MCredibility
ResolutionMofMEthicalMConflictM-
MAnswerMa.MDiscussMtheMissueMwithMyouMimmediateMsupervisor
b.MAdvanceMtoMtheMnextMlevelMofMmanagementMuntilMaddressed
c.MConsultMwithMconfidentialMIMAMethicsMadvisor
d.MSeekMexternalMcounsel
CompetenceM(4)M-MAnswerM1.MMaintainMexpertiseMthoughMcontinuedMlearning
2.MAdhereMtoMlaws,Mregulations,Metc.
3.MProvideMadequateMdecisionMsupport
4.MRecognizeMandMcommunicateMprofessionalMlimitations
ConfidentialityM(3)M-MAnswerM1.MMaintainMunlessMauthorizedMorMlegallyMrequired
2.MInformMrelevantMpartiesMofMappropriateMuse
3.MDoMnotMuseMforMunethicalMorMillegalMadvantage
IntegrityM(3)M-MAnswerM1.MMitigateMactual,MavoidMapparent,MadviseMpossible
2.MAvoidMactivitiesMtoMcauseMprejudiceM
3.MAbstainMfromMdiscreditingMactivities
,CredibilityM(3)M-MAnswerM1.MCommunicateMfairMandMobjectively
2.MDiscloseMallMrelevantMinformation
3.MDiscloseMallMdelaysMorMdeficienciesMinMconformingMwithMcontrols,Mleads,Metc.
DescribeMtheMprovisionsMofMtheMForeignMCorruptMPracticesMActMofM1977M-
MAnswerM1.MAccounting
a.MInternalMControls
b.MAccurateMRecords
2.MAnti-Bribery
a.MNoMdomesticMconcernMmayMofferMcorruptMpayments
('grease'MpaymentsMok)
SOXM406(a)M&M406(c)M-
MAnswerMa.MCompaniesMmustMissueMaMCodeMofMEthicsMtoMseniorMfinancialMofficers.
c.MCodeMofMEthicsMmustMincludeMstandardsMtoMpromoteM(basicallyMIMA'sMstandards)
CorporateMResponsibilityMforMEthicalMBehaviorM(7)M-MAnswerM1.MFosterMethics
2.MEthicalMvs.MLegal
3.MToneMfromMtheMTop
4.MCulture
5.MTraining
6.MMonitoringM(KPI's,MwhistleblowerMframework,Metc.)
7.MEthicalMbehaviorMframeworkMisMprerequisiteMforMinternalMcontrol
ProcessMControlsMforMEthicalMBehaviorM(3)M-
MAnswerM1.MBusinessMProcessMReengineering
2.MQualityMManagement
3.MContinuousMProcessMImprovement
TypesMofMFraudM(2)M-MAnswerM1.MFinancialMMisreportingM-MusuallyMmanagement
2.MMisappropriationMofMAssetM-MusuallyMemployeeM(immaterial)
,FraudMRiskMModelM-MAnswerM1.MOpportunityM-MControllable
2.MRationalizationM-MInherent
3.MMotivationM-MGenerallyMexternal
FraudMInvestigationMTechniquesM(3)M-MAnswerM1.MInterviewing
2.MPublicMSearch
3.MDocumentation
Primary/SecondaryMFraudMControlsM(4/2)M-MAnswerM1.MPreventative
2.MDetective
3.MCorrective
4.MDirective
A.MCompensatoryM-MManagerMReview
B.MComplementaryM-MDepositMSlips
SegregationMofMDutiesM-MAnswerM1.MCustody
2.MAuthority
3.MRecord-Keeping
NetMWorkingMCapitalMRatioM-MAnswerM=MNetMWorkingMCapital/TotalMAssets
AccountsMPayableMTurnoverM-MAnswerM=MPurchases/AverageMAP
Days'MPurchasesMinMAPM-MAnswerM=MDaysMinMYear/APMTurnover
OperatingMCycleM-MAnswerM=MDays'MSalesMinMARM+MDays'MSalesMinMInventory
CashMCycleM-MAnswerM=MOperatingMCycleM-MDays'MPurchasesMinMAP
FixedMAssetMTurnoverMRatioM-MAnswerM=MNetMSales/NetMAverageMPPE
, TotalMAssetsMTurnoverM-MAnswerM=MNetMSales/AverageMTotalMAssets
TotalMDebtMtoMTotalMCapitalMRatioM-MAnswerM=MTotalMDebt/TotalMCapital
-MCreditorsMpreferMlowMtoMcushionMlosses
DebtMtoMEquityMRatioM(eq.+2)M-MAnswerM=MTotalMDebt/TotalMEquity
-MHigherMmeansMshareholdersMwantMhigherMreturns
-MLowerMmeansMbetterMinterestMrates
DebtMRatioM-MAnswerM=MTotalMDebt/TotalMAssets
TimesMInterestMEarnedM-MAnswerM=MEBIT/InterestMExpense
-MShouldMnotMincludeMirregularMearnings
DegreeMofMOperatingMLeverageM(singleMperiod)M-
MAnswerM=MContributionMMargin/OperatingMIncome
-MNotMmeaningfulMifMloss
DegreeMofMOperatingMLeverageM(percentageMchange)M-
MAnswerM=M%MchgMinMOperatingMIncomeMorMEBITM/M%MchgMinMSales
-MNecessaryMwhenMusingMabsorption
-MHighMleverageMisMriskier,MbutMalsoMhasMgreaterMcapacity
-MChangeMindicatesMtheMreturnMofMEBITMforMeveryM$1MofMsales
DegreeMofMFinancialMLeverageM(singleMperiod)M-MAnswerM=MEBIT/EBT
DegreeMofMFinancialMLeverageM(percentageMchange)M-
MAnswerM=M%MchgMinMNetMIncomeM/M%MchgMinMEBIT
Answers Updated 2026
IMA'sMOverarchingMPrinciplesM-MAnswerM1.MHonesty
2.MFairness
3.MObjectivity
4.MResponsibility
IMA'sMFourMStandardsM-MAnswerM1.MCompetence
2.MConfidentiality
3.MIntegrity
4.MCredibility
ResolutionMofMEthicalMConflictM-
MAnswerMa.MDiscussMtheMissueMwithMyouMimmediateMsupervisor
b.MAdvanceMtoMtheMnextMlevelMofMmanagementMuntilMaddressed
c.MConsultMwithMconfidentialMIMAMethicsMadvisor
d.MSeekMexternalMcounsel
CompetenceM(4)M-MAnswerM1.MMaintainMexpertiseMthoughMcontinuedMlearning
2.MAdhereMtoMlaws,Mregulations,Metc.
3.MProvideMadequateMdecisionMsupport
4.MRecognizeMandMcommunicateMprofessionalMlimitations
ConfidentialityM(3)M-MAnswerM1.MMaintainMunlessMauthorizedMorMlegallyMrequired
2.MInformMrelevantMpartiesMofMappropriateMuse
3.MDoMnotMuseMforMunethicalMorMillegalMadvantage
IntegrityM(3)M-MAnswerM1.MMitigateMactual,MavoidMapparent,MadviseMpossible
2.MAvoidMactivitiesMtoMcauseMprejudiceM
3.MAbstainMfromMdiscreditingMactivities
,CredibilityM(3)M-MAnswerM1.MCommunicateMfairMandMobjectively
2.MDiscloseMallMrelevantMinformation
3.MDiscloseMallMdelaysMorMdeficienciesMinMconformingMwithMcontrols,Mleads,Metc.
DescribeMtheMprovisionsMofMtheMForeignMCorruptMPracticesMActMofM1977M-
MAnswerM1.MAccounting
a.MInternalMControls
b.MAccurateMRecords
2.MAnti-Bribery
a.MNoMdomesticMconcernMmayMofferMcorruptMpayments
('grease'MpaymentsMok)
SOXM406(a)M&M406(c)M-
MAnswerMa.MCompaniesMmustMissueMaMCodeMofMEthicsMtoMseniorMfinancialMofficers.
c.MCodeMofMEthicsMmustMincludeMstandardsMtoMpromoteM(basicallyMIMA'sMstandards)
CorporateMResponsibilityMforMEthicalMBehaviorM(7)M-MAnswerM1.MFosterMethics
2.MEthicalMvs.MLegal
3.MToneMfromMtheMTop
4.MCulture
5.MTraining
6.MMonitoringM(KPI's,MwhistleblowerMframework,Metc.)
7.MEthicalMbehaviorMframeworkMisMprerequisiteMforMinternalMcontrol
ProcessMControlsMforMEthicalMBehaviorM(3)M-
MAnswerM1.MBusinessMProcessMReengineering
2.MQualityMManagement
3.MContinuousMProcessMImprovement
TypesMofMFraudM(2)M-MAnswerM1.MFinancialMMisreportingM-MusuallyMmanagement
2.MMisappropriationMofMAssetM-MusuallyMemployeeM(immaterial)
,FraudMRiskMModelM-MAnswerM1.MOpportunityM-MControllable
2.MRationalizationM-MInherent
3.MMotivationM-MGenerallyMexternal
FraudMInvestigationMTechniquesM(3)M-MAnswerM1.MInterviewing
2.MPublicMSearch
3.MDocumentation
Primary/SecondaryMFraudMControlsM(4/2)M-MAnswerM1.MPreventative
2.MDetective
3.MCorrective
4.MDirective
A.MCompensatoryM-MManagerMReview
B.MComplementaryM-MDepositMSlips
SegregationMofMDutiesM-MAnswerM1.MCustody
2.MAuthority
3.MRecord-Keeping
NetMWorkingMCapitalMRatioM-MAnswerM=MNetMWorkingMCapital/TotalMAssets
AccountsMPayableMTurnoverM-MAnswerM=MPurchases/AverageMAP
Days'MPurchasesMinMAPM-MAnswerM=MDaysMinMYear/APMTurnover
OperatingMCycleM-MAnswerM=MDays'MSalesMinMARM+MDays'MSalesMinMInventory
CashMCycleM-MAnswerM=MOperatingMCycleM-MDays'MPurchasesMinMAP
FixedMAssetMTurnoverMRatioM-MAnswerM=MNetMSales/NetMAverageMPPE
, TotalMAssetsMTurnoverM-MAnswerM=MNetMSales/AverageMTotalMAssets
TotalMDebtMtoMTotalMCapitalMRatioM-MAnswerM=MTotalMDebt/TotalMCapital
-MCreditorsMpreferMlowMtoMcushionMlosses
DebtMtoMEquityMRatioM(eq.+2)M-MAnswerM=MTotalMDebt/TotalMEquity
-MHigherMmeansMshareholdersMwantMhigherMreturns
-MLowerMmeansMbetterMinterestMrates
DebtMRatioM-MAnswerM=MTotalMDebt/TotalMAssets
TimesMInterestMEarnedM-MAnswerM=MEBIT/InterestMExpense
-MShouldMnotMincludeMirregularMearnings
DegreeMofMOperatingMLeverageM(singleMperiod)M-
MAnswerM=MContributionMMargin/OperatingMIncome
-MNotMmeaningfulMifMloss
DegreeMofMOperatingMLeverageM(percentageMchange)M-
MAnswerM=M%MchgMinMOperatingMIncomeMorMEBITM/M%MchgMinMSales
-MNecessaryMwhenMusingMabsorption
-MHighMleverageMisMriskier,MbutMalsoMhasMgreaterMcapacity
-MChangeMindicatesMtheMreturnMofMEBITMforMeveryM$1MofMsales
DegreeMofMFinancialMLeverageM(singleMperiod)M-MAnswerM=MEBIT/EBT
DegreeMofMFinancialMLeverageM(percentageMchange)M-
MAnswerM=M%MchgMinMNetMIncomeM/M%MchgMinMEBIT
