CMA Exam Part 2

Overview, syllabus and pass rate

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Author of How to Pass the CPA Exam
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Todays topic: The new syllabus of
CMA Exam Part 2

Major Topics in CMA Exam

(Part 2)

Financial statement
analysis (25%)
Corporate finance (20%)
Decision analysis (20%)
Risk management (10%)

Investment decisions
(15%)
Professional ethics (10%)

A. Financial
Statement Analysis

 Financial ratios
Performance utilizing
multiple ratios
Market value vs book value

How to
evaluate
using data
and ratios

Profitability analysis
Effects of changing prices and inflation

Off-balance sheet financing

Special analytical issues

Section A - Part 1
Understand
financial statement
Focus on past
performance

Section A - Part 2
Utilize ratios and
analysis for
evaluation
Focus on future
prospect

Memorize the ratios!

B. Corporate Finance

 Types of risk
Capital instruments for financing

IPOs and secondary public

offerings

Understand
financial
instruments

Dividend policy

Cost of capital
Working capital management; raising capital
Mergers and acquisitions; international finance

In this section, candidates should understand:

Short-term and long-term financial
management
Their benefits and limitations

Mixture of conceptual
and computational questions

C. Decision Analysis

 Relevant data concepts

Cost volume profit analysis
Marginal analysis
Make vs buy decisions

Income tax implication for

operational decision analysis
Pricing methodologies

Provide
analysis for
decision
making

D. Risk Management

 Types of risk: business, hazard,

financial, operational, legal
Risk mitigation
Risk management
Risk analysis
Enterprise risk management
(ERM)

How to
identify and
manage
risks

Mostly conceptual

E. Investment Decisions

 Cash flow estimates

Discounted cash flow concepts
Net present value
Internal rate of return

Discounted payback
Risk analysis and real options

Tools
for making
investment
decisions

F. Professional Ethics

 Ethical considerations for:

Management accounting
professionals

Ethics for
individuals &
organizations

Organization as a whole

Memorize the Standards!

Pass rate has been low

CMA Exam
Part 2
Pass Rate

42%

But if you use the right tools

and strategies
Committed candidates
have much higher chance

Plan, Study and Pass

the CMA exam on your first attempt with...

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