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Exam Review

Key Facts: CMA Part 1 Exam

Case-Based Questions

IMA CMA enrollment page

360/500

Passing Score

Scaled score

150-200 hrs

Study Time

Recommended

100K+

CMA Holders

Worldwide, IMA

$545

Exam Fee per Part

IMA CMA enrollment page

4 hrs

Time Limit

MCQs + case-based questions

CMA Part 1 has 100 multiple-choice questions (MCQs) and 2 case-based questions, with a 4-hour time limit. A scaled score of 360 out of 500 is needed to pass. Part 1 covers external financial reporting (15%), planning, budgeting and forecasting (20%), performance management (20%), cost management (15%), internal controls (15%), and technology and analytics (15%). The CMA credential is offered by the Institute of Management Accountants (IMA), with over 100,000 certifications earned globally.

Sample CMA Part 1 Practice Questions

Try these sample questions to review concepts for the CMA Part 1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1Which of the following financial statements reports a company's financial position at a specific point in time?

A.Income statement

B.Balance sheet

C.Statement of cash flows

D.Statement of retained earnings

Explanation: The balance sheet (statement of financial position) reports a company's assets, liabilities, and equity at a specific point in time. The income statement, statement of cash flows, and statement of retained earnings all cover a period of time rather than a single date.

2Under GAAP, which of the following is classified as a current asset on the balance sheet?

A.Goodwill

B.Patent with 5 years remaining useful life

C.Prepaid insurance covering the next 8 months

D.Land held for future plant expansion

Explanation: Prepaid insurance covering the next 8 months is a current asset because it will be consumed within one year or the operating cycle, whichever is longer. Goodwill and patents are intangible assets (non-current), and land held for expansion is a long-term asset.

3A company has total assets of $500,000, total liabilities of $300,000, and retained earnings of $120,000. What is the company's contributed capital (paid-in capital)?

A.$80,000

B.$120,000

C.$200,000

D.$380,000

Explanation: Using the accounting equation: Assets = Liabilities + Equity. Total equity = $500,000 - $300,000 = $200,000. Since equity = contributed capital + retained earnings, contributed capital = $200,000 - $120,000 = $80,000.

4Which section of the statement of cash flows reports cash paid for the purchase of equipment?

A.Operating activities

B.Investing activities

C.Financing activities

D.Supplemental disclosures

Explanation: Cash paid for the purchase of equipment is an investing activity. Investing activities include the acquisition and disposal of long-term assets and investments. Operating activities involve day-to-day business operations, and financing activities relate to debt and equity transactions.

5A company reports net income of $150,000, depreciation expense of $25,000, an increase in accounts receivable of $10,000, and a decrease in accounts payable of $8,000. Using the indirect method, what is the net cash provided by operating activities?

A.$133,000

B.$157,000

C.$167,000

D.$193,000

Explanation: Using the indirect method: Start with net income ($150,000), add back depreciation ($25,000), subtract the increase in accounts receivable ($10,000), and subtract the decrease in accounts payable ($8,000). Cash from operations = $150,000 + $25,000 - $10,000 - $8,000 = $157,000.

6Which of the following would cause comprehensive income to differ from net income?

A.A gain on the sale of equipment

B.An unrealized holding gain on available-for-sale debt securities

C.Revenue recognized from a long-term contract

D.Amortization of a premium on bonds payable

Explanation: Unrealized holding gains and losses on available-for-sale debt securities are reported in other comprehensive income (OCI), causing comprehensive income to differ from net income. The other items are all included in net income on the income statement.

7A company has the following data: beginning inventory $40,000, purchases $180,000, ending inventory $35,000, and sales revenue $320,000. What is the gross profit margin?

A.42.2%

B.57.8%

C.62.5%

D.37.5%

Explanation: COGS = Beginning inventory + Purchases - Ending inventory = $40,000 + $180,000 - $35,000 = $185,000. Gross profit = Sales - COGS = $320,000 - $185,000 = $135,000. Gross profit margin = Gross profit / Sales = $135,000 / $320,000 = 0.4219 = 42.2%.

8Under the multi-step income statement format, which of the following is subtracted from gross profit to arrive at operating income?

A.Interest expense

B.Income tax expense

C.Selling, general, and administrative expenses

D.Loss on disposal of discontinued operations

Explanation: In a multi-step income statement, operating expenses (selling, general, and administrative expenses) are subtracted from gross profit to arrive at operating income. Interest expense and income tax expense appear below operating income. Discontinued operations are reported separately after income from continuing operations.

9A company has a current ratio of 2.5 and current liabilities of $200,000. If the company pays off $50,000 of accounts payable with cash, what is the new current ratio?

A.2.33

B.2.67

C.3.00

D.3.33

Explanation: Original current assets = 2.5 x $200,000 = $500,000. After paying $50,000 of accounts payable: Current assets = $500,000 - $50,000 = $450,000. Current liabilities = $200,000 - $50,000 = $150,000. New current ratio = $450,000 / $150,000 = 3.00. When the current ratio is above 1.0, paying off current liabilities with current assets increases the ratio.

10Which of the following transactions would be reported as a financing activity on the statement of cash flows?

A.Payment of dividends to shareholders

B.Collection of a note receivable from a customer

C.Purchase of treasury bonds as an investment

D.Payment of interest on bonds payable

Explanation: Payment of dividends to shareholders is a financing activity because it involves distributing cash to equity holders. Collection of a note receivable is an investing activity. Purchase of treasury bonds (as investments) is an investing activity. Payment of interest on bonds payable is classified as an operating activity under GAAP.

About the CMA Part 1 Exam

CMA Part 1 covers Financial Planning, Performance, and Analytics. It tests management accounting skills including financial reporting, planning & budgeting, cost management, and internal controls. The CMA is globally recognized with over 100,000 certified professionals.

Exam sponsor: IMA (Prometric). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

4 hours

Passing Score

360/500

Exam / Certification Fees

$545 per part + $300 entrance fee

Exam sponsor website

Reported exam pass rate: Not published. IMA's current CMA pages do not publish a pass rate Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

15%

External Financial Reporting Decisions

Financial statements, recognition, measurement, valuation, disclosure

20%

Planning, Budgeting & Forecasting

Strategic planning, budgets, forecasting techniques, variance analysis

20%

Performance Management

Cost measurement, cost management, performance measures, benchmarking

15%

Cost Management

Cost accounting systems, overhead allocation, operational efficiency, supply chain

15%

Internal Controls

Governance, risk management, internal audit, systems controls

15%

Technology & Analytics

IT systems, data governance, data analytics, visualization

Preparing for the CMA Part 1 Exam

What You Need to Know

Passing score: 360/500
Exam length: 100 questions
Time limit: 4 hours
Exam / certification fees: $545 per part + $300 entrance fee Official sources

Using Our Practice Resources

Work through all 200 available questions
Review every answer and explanation
Track weak areas and revisit them
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CMA Part 1: Suggested Study Strategy

1Master financial statement preparation and analysis — external financial reporting is 15% of the exam

2Understand variance analysis deeply: price, quantity, efficiency, volume variances and their causes

3Know cost accounting systems: job costing, process costing, ABC, standard costing

4Practice CVP analysis calculations: breakeven point, contribution margin, target profit

5Study the COSO Internal Control Framework: 5 components and 17 principles

6Don't neglect the case-based questions — practice drag and drop, fill in the blank, select from a list and calculation tasks on short business cases

Frequently Asked Questions

What is the CMA Part 1 pass rate?

IMA's current CMA pages do not publish a pass rate. The exam has 100 MCQs and 2 case-based questions over 4 hours, and you need a scaled score of 360 out of 500 to pass.

How hard is CMA Part 1?

CMA Part 1 is considered quite challenging. Financial reporting and cost management require deep understanding of GAAP, variance analysis, and cost accounting systems. The case-based questions test how you apply concepts to short business cases. Plan for 150-200 hours of study.

What is on CMA Part 1?

CMA Part 1 covers: External Financial Reporting (15%), Planning/Budgeting/Forecasting (20%), Performance Management (20%), Cost Management (15%), Internal Controls (15%), and Technology & Analytics (15%). The exam has 100 MCQs (3 hours) and 2 case-based questions (1 hour).

How long should I study for CMA Part 1?

Plan for 150-200 hours of study over 3-6 months. Focus on planning/budgeting and performance management first, as they're the largest sections at 20% each. Practice MCQs extensively and work through practice case-based questions. Aim for 75%+ on practice exams before scheduling.

CMA vs CPA — which is better?

CMA focuses on management accounting (internal decision-making, planning, performance) while CPA focuses on financial accounting (auditing, tax, external reporting). CMAs typically work in corporate finance, FP&A, and strategic roles. The CMA has 2 parts vs. CPA's 4 parts, and generally requires less total study time.