CMA Part 2 study guide
CMA Part 2 · Work through your exam, one topic at a time.
The CMA (Certified Management Accountant) is a management accounting credential awarded by the Institute of Management Accountants (IMA), which describes it as "the globally recognized standard in management accounting - and a proven path to bigger roles and better opportunities." Part 2 is the second of the exam's two sections and concentrates on the finance professional's role as an analyst and decision partner rather than a preparer of records. Its subject matter spans financial statement analysis, corporate finance, decision analysis, risk management, investment decisions, and professional ethics - the toolkit a management accountant uses to interpret performance, fund the business, evaluate projects and product decisions, and act with integrity under pressure. The CMA Part 2 study guide has 6 sections and about 2,197 words.
01Financial Statement Analysis
Ratio analysis is the backbone of this domain. Learn the five families and what each reveals: liquidity (current, quick, cash ratios), activity (receivables turnover and days sales outstanding, inventory turnover and days, total asset turnover), solvency (debt-to-equity, debt-to-total-assets, times interest earned), profitability (gross, operating, and net margins; ROA; ROE), and market value (EPS, P/E, dividend payout, dividend yield, book value per share).
377 words, about 2 min02Corporate Finance
Corporate finance questions cluster around three ideas: the cost of capital, the capital structure decision, and working capital management. For cost of capital, know that the weighted average cost of capital (WACC) blends after-tax cost of debt with the cost of equity, weighted at market values on a marginal (target) basis.
383 words, about 2 min03Decision Analysis
Decision analysis tests whether you can isolate relevant information. Relevant costs and revenues are future, incremental, and differ between alternatives.
344 words, about 2 min04Risk Management
Expect questions on the risk universe and how firms respond to it. Classify risks as strategic, operational, financial, and compliance/reporting.
370 words, about 2 min05Investment Decisions
Capital budgeting dominates this domain. Master net present value (NPV), internal rate of return (IRR), payback and discounted payback, profitability index, and modified IRR.
363 words, about 2 min06Professional Ethics
Ethics questions are usually scenario-based and reward the response that is honest, transparent, and follows the escalation ladder. Know the IMA Statement: four principles (honesty, fairness, objectivity, responsibility) and four standards- competence (maintain skills, provide accurate and timely analysis, recognize limitations), confidentiality (do not disclose or use confidential information for personal advantage; exceptions for legal requirement or authorized disclosure), integrity (avoid conflicts of interest, refuse gifts that influence judgment, communicate unfavorable as well as favorable information), and credibility (disclose all relevant information, disclose delays or deficiencies, ensure information is timely, clear, and conformant).
360 words, about 2 min