What You Will Learn!
- Financial Statement Analysis
- Corporate Finance
- Decision Analysis
- Risk Management
- Ethics
- Investment Decision analysis
Description
CMA Part 2 is one of the two parts of the Certified Management Accountant (CMA) exam, a globally recognized certification awarded by the Institute of Management Accountants (IMA). The CMA certification is designed for accounting and finance professionals and focuses on financial management and strategy skills. Part 2 specifically deals with "Strategic Financial Management" and covers a broad range of topics important for corporate finance and decision-making. Here's a detailed overview of its content areas:
1. Financial Statement Analysis (20%)
This section covers the analysis of financial statements, including ratio analysis, trend analysis, and comparative financial statements. Candidates learn how to interpret financial statements to assess an organization's financial health and make strategic decisions.
2. Corporate Finance (20%)
This section focuses on the financial management of corporations, including risk management, financial instruments, cost of capital, and the financing of operations through debt and equity. It also covers working capital management, investment decisions, and how to manage corporate restructuring and mergers and acquisitions.
3. Decision Analysis (25%)
This area involves the use of quantitative methods to inform decision-making. Topics include cost-volume-profit analysis, marginal analysis, pricing decisions, and using statistical methods to inform business decisions. It emphasizes the role of financial data in operational decision-making.
4. Risk Management (10%)
Candidates learn about various risk management strategies and tools, including financial derivatives for hedging risks. This section also covers the identification and management of financial and operational risks in a business context.
5. Investment Decisions (10%)
This section deals with how to evaluate and manage investments, focusing on capital budgeting techniques, project analysis, and the assessment of investment opportunities. It teaches how to apply valuation methods to real-world scenarios.
6. Professional Ethics (15%)
This critical area emphasizes the importance of ethical considerations in financial management. It covers ethical standards for financial managers and accountants, including the IMA's Statement of Ethical Professional Practice. Candidates learn about ethical decision-making processes, corporate governance, and the role of ethics in business sustainability and social responsibility.
Exam Format and Preparation
The CMA Part 2 exam consists of 100 multiple-choice questions and two 30-minute essay questions. Candidates have 4 hours to complete the exam. The exam is computer-based and administered in a proctored environment.
To prepare for the CMA Part 2 exam, candidates typically engage in a rigorous study plan using various resources, including the IMA's Learning System, online courses, study guides, and practice exams. The IMA also offers educational and support resources to help candidates prepare.
The CMA certification, including both Part 1 and Part 2 exams, is highly regarded in the field of management accounting and finance. It signifies a strong foundation in financial planning, analysis, control, decision support, and professional ethics.
Who Should Attend!
- Students pursuing CMA USA certification