Hello Siraj,
Rather than solving this case I would like to give a gentle reminder and very important notes.
CMA exam is testing our knowledge, experience & skills:
- Knowledge: How we master CMA educational requirements (LOS).
- Experience: How we treat accounting & financial information professionally.
- Skills: How we apply the above and manage ourselves "Efficiently" during the exam.
During exam we have less than 2.5 minutes (Maximum) to solve any computational MCQ (Considering the time savings of conceptual MCQ), so we need to be very careful of the following (3) points: (In same order)
- Pay attention to Key words
- Isolate irrelevant (Misleading) information
- Respond exactly to what is required
Personally, I prefer to read what is required first (Last line), then go back to read the entire MCQ paragraph. It will help to focus on relevant info and trigger the solution process .. It is kind of soft skill to scan, analyze and conclude in few seconds.
Applying the above to our case study here:
- Required: Accounts receivable balance on May 1 ??? ..... You mixed-up with Cash Collection question (I can refer it to "Hurry" in response)
- Irrelevant information: January & February sales
- Irrelevant & misleading information: Customers who pay in the month of sale are given a 2% discount.
- Key words: Dates (March & April), Numbers ($280,000 & $260,000), Percentages (40% & 25%)
Using our professional experience will help us to decide the short way to solve the answer:
- Using mathematical formula: April 30 AR balance = (Mar sales x 15%) + (Apr sales x 40%) = $42,000 + $104,000 = $146,000
- Using Accounts Receivable T account (As per the attached picture) ... Please review the cash collection also
You & many candidates may argue that: We don't have time to do all these steps during exam ???!!!
I can easily say: Try to adopt this approach at home, then speed-up the process (Practice & practice multiple times), you will definitely reach the level to solve such a question in less than 2 minutes.
The main target is: "
Efficient Time Management" ... Correct answer in Standard allowable time.
Hope you will benefit from these notes more than the solution itself.
Wish you best of luck, success, safe & healthy condition.
Kind regards
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Samer Ahmad, FMVA, SCA
Kuwait
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Original Message:
Sent: 05-18-2020 09:42 PM
From: Siraj Paneru
Subject: General query
Could someone explain the following question of CMA exam support package 2020 Please? The answer is (C)15% of March sales + 40% of April sales = $146000. But why?
My understanding is 15% of March sales + 25% of April sales = $104120 Option A.
Granite Company sells products exclusively on account, and has experienced the following collection pattern: 60% in the month of sale, 25% in the month after sale, and 15% in the second month after sale. Uncollectible accounts are negligible. Customers who pay in the month of sale are given a 2% discount. If sales are $220,000 in January, $200,000 in February, $280,000 in March, and $260,000 in April, Granite's accounts receivable balance on May 1 will be
a. $107,120.
b. $143,920.
c. $146,000.
d. $204,000.
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Siraj Paneru
Accountant
Revere MA
United States
Original Message:
Sent: 05-17-2020 03:30 PM
From: Samer Ahmad
Subject: General query
Hello Nimra,
Welcome to our study group .. Hope you are safe & motivated to win the CMA battle.
Wiley full package (Platinum) is a great tool which can cover up to 85% of CMA exam requirements. The rest of comes from IMA Exam Support Package (10%) and web research (5%).
Most important points to keep in mind are:
- Commit to your study plan
- Master IMA Learning Outcome Statements
- Practice .. practice & practice
- Time management
For more details, please review your profile mailbox.
Wish you best of luck, success, safe & healthy condition
Kind regards
------------------------------
Samer Ahmad, FMVA, SCA
Kuwait
Original Message:
Sent: 05-17-2020 12:54 PM
From: Nimra Nimra Khadeeja
Subject: General query
Heyy guys! I just registered for the CMA course but I've a few doubts regarding the review material. Would Wiley review materials be enough or do I have to refer to some other material as well? And if anybody could suggest what do I start with? Like some tips and suggestions on how to get started would be great! Also, I'm doing it from Bahrain so anybody in Bahrain want to study together, please contact me. This is my contact number: 0097338713491 Thank you,Nimra Sent from my iPhone