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  • 1.  CMA Pop Quiz- Q&A 215

    Posted 01-19-2018 01:14 PM

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

    Douglas Company purchased 10,000 shares of its common stock at the beginning of the year for cash. This transaction will affect all of the following EXCEPT the

    a. debt-to-equity ratio.
    b. earnings per share.
    c. net profit margin.
    d. current ratio.





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    Christine Purelis
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  • 2.  RE: CMA Pop Quiz- Q&A 215

    Posted 01-20-2018 02:29 AM





  • 3.  RE: CMA Pop Quiz- Q&A 215

    Posted 01-20-2018 11:58 AM
    CMA Pop Quiz: How did you do on our #CMAPopQuiz? #CMA

    Solution: C

    The only measure not affected by the purchase of its own common stock is Douglas' net profit margin. Both the debt/equity ratio and the earnings per share are affected by the number of outstanding shares of common stock, while the current ratio is affected by the amount of cash held. 
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    Christine Purelis
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