Which of the Following Statements Is TRUE Concerning the CMA

question 23

Multiple Choice

Which of the following statements is TRUE concerning the CMA?

• A) To earn the CMA, an examination must be passed.
• B) Experience in the accounting field is not necessary to earn the CMA.
• C) Compliance with the Institute of Management Accountants' Statement of Ethical Professional Practice is not necessary to earn the CMA.
• D) Both B and C above.

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Definitions:

SEC Rule 10b-5

A regulation by the Securities and Exchange Commission that prohibits fraud and misrepresentation in securities trading.

Privity

A doctrine in contract law that holds that contracts are private agreements between the parties who have mutually consented to them, and thus, only those parties have the rights and liabilities under the contract.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to harm or damage.

Malpractice Claim

A malpractice claim is a lawsuit brought against a professional (commonly in healthcare) for negligence or failure to perform their duties to an acceptable standard, resulting in harm to a client or patient.