IMANET Exam CMA Topic 2 Question 110 Discussion

Actual exam question for IMANET's CMA exam

Question #: 110
Topic #: 2

[All CMA Questions]

The most direct way to prepare a cash budget for a manufacturing firm into include

AProjected sales, credit terms, and net income.

BProjected net income, depreciation, and goodwill amortization.

CProjected purchases, percentages of purchases paid, and net income.

DProjected sales and purchases, percentages of collections, and terms of payments.

Show Suggested Answer

Suggested Answer: D

The most direct way of preparing a cash budget requires incorporation of sales projections and credit terms, collection percentages, estimated purchases and payment terms, and other cash receipts and disbursements. In other words, preparation of the cash budget requires consideration of both inflows and outflows.

by Antonio at Apr 04, 2025, 05:06 AM

Limited Time Offer

25%

Off

Get Premium CMA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Domitila

3 days ago

Haha, goodwill amortization? Really? That's like trying to bake a cake without flour. Option D is the clear winner here.

upvoted 0 times

...

Tasia

5 days ago

I'm with Argelia on this one. Option D covers all the bases. Anything less would be like trying to build a house without a foundation.

upvoted 0 times

...

Argelia

10 days ago

D is the way to go! Projected sales and purchases, along with collection and payment terms, are the key components for a cash budget. The other options just don't capture the full picture.

upvoted 0 times

...

Brice

20 days ago

I think the answer is D.

upvoted 0 times

...