CMA Community / Study Group

1.  CMA Pop Quiz - Q173

Posted 03-31-2017 01:57 PM
3kQJRaDSrqX46a0E3ySR_Q173--question.png

Are you preparing for the CMA exam? Take our CMA Pop Quiz!




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Morgan Greenleaf
Social Media & Marketing Product Specialist
IMA
Montvale NJ
United States
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2.  RE: CMA Pop Quiz - Q173

Posted 05-02-2017 03:26 AM
c. 146k

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JENNIFER PINTOR
Accountant
Qatar
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3.  RE: CMA Pop Quiz - Q173

Posted 05-29-2017 01:07 AM
Can you explain me this answer

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Chithra Rajasekharan
Accountant
Ajay William
Dubai
United Arab Emirates
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4.  RE: CMA Pop Quiz - Q173

Posted 05-30-2017 08:48 AM
Note that payments are fully made after 3 months: 60% in month of sale, 25% in the next month and the final 15 % in the 3rd month. As such Jan sales are fully paid by the end of April.........this should now enable to complete the same scenarios for the sales of Feb etc. Cliff

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Clifford Moggs CMA
Other
Reading
United Kingdom
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5.  RE: CMA Pop Quiz - Q173

Posted 05-30-2017 12:14 PM
Sent from my iPhone




6.  RE: CMA Pop Quiz - Q173

Posted 05-29-2017 01:18 AM
can you explain this answer.

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Chithra Rajasekharan
Accountant
Ajay William
Dubai
United Arab Emirates
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7.  RE: CMA Pop Quiz - Q173

Posted 05-30-2017 02:12 PM
The A/R related to January and February will be paid by April and there will be no outstanding amount with respect to those sales.
For Sales made in March there will be an outstanding amount of 15% as the 60% will be paid in March and 25% will be paid in April.
The 15% on March Sales = 15% * 280,000 = 42,000
For sales made in April there will be an outstanding amount of 40% as only 60% was made in April.
The 40% on April Sales  = 0.40* 260,000 = 104,000

Therefore the remaining balance in A/R is 42,000 + 104,000 = 146,000.

Please note that he 2% discount mentioned is information that is not used for computation as it works only when full amount is paid however there is no data on that, so ignore it.

I hope it explains.

Thanks,
Chaya


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