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An Understanding Of The Course Content Of CMA USA Part 2 Exams

An Understanding Of The Course Content Of CMA USA Part 2 Exams

An Understanding Of The Course Content Of CMA USA Part 2 Exams:-

US CMA demonstrates your professional expertise in financial planning, analysis, control, decision support, and professional ethics – making you the preferred choice of the potential employers. CMA certification is widely accepted in India and in the job markets of US, Canada, Europe, Middle East and China.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

About US CMA Course:-

The US CMA® Course is globally recognised, advanced-level credential appropriate for accountants and financial professionals in business. Achieving the US CMA demonstrates your professional expertise in financial planning, analysis, control, decision support, and professional
ethics – skills that are in demand by organisations around the world. The US CMA is offered by the Institute of Management Accountants (IMA) USA and the content is regularly reviewed by the Institute of Certified Management Accountants (ICMA).

It’s offered since 1972 and has certified 40,000 professionals. US CMA® enhances the value that you bring to your current position, or expand your career potential, it will help you set the standard for professional excellence.

The CMA Exam has a unique scoring system that can sometimes be confusing for candidates. Here’s everything you need to know to correctly interpret your CMA Exam score.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

CMA Exam Part 2 Topic Areas

Part 2 is all about financial analysis and decision making. There are six sections.

  • Financial Statement Analysis representing 25%,
  • corporate finance at 20%,
  • decision analysis at 20%,
  • risk management at 10%,
  • investment decisions at 15%
  • professional ethics at 10%.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

A. Financial Statement Analysis

This is the biggest section representing 25% of Part 2. Major topics include financial ratios, performance utilizing multiple ratios, market value vs book value, profitability analysis, effects of changing prices and inflation, off-balance sheet financing, and special issues such as foreign currency fluctuations, fair value accounting, and US GAAP vs IFRS.

The coverage is similar to Section A of Part 1 on financial accounting, but the focus is more on analysis and comparison using key financial data and ratios. In other words, Section A part 1 is more on understanding past performance using financial statement, while Section A in Part 2 focuses on evaluating future prospect.

CMA exam candidates should be very familiar with these ratios and analytical tools. I suggest that you memorize the formulas of all key ratios. You will also need to know the applications, and understand how external investors use them to evaluate the company’s financial health.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

B. Corporate Finance

Corporate finance is another important topic. Candidates should know the types of risk including the key concept of risk and return, capital instruments for financing, initial and secondary public offerings, dividend policy, cost of capital, working capital management, raising capital, mergers and acquisitions and international finance.

We should understand the short-term and long-term financial management, as well as the benefits and limitations of major financial instruments.

Candidates will see a mix of conceptual and computational questions. The variety of questions can be very broad, but the calculations are likely quite basic.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

C. Decision Analysis

In this section candidates are tested on how management accountants provide data and perform analysis for the decision-making process.

Exam content includes relevant data concepts, cost volume profit analysis, marginal analysis, make vs buy decisions, income tax implication for operational decision analysis, and pricing methodologies.

Risk management is also part of decision analysis but we will go through this topic in Section D.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

D. Risk Management

This section covers the types of risk, including business, hazard, financial, operational and legal risks; risk mitigation, risk management, risk analysis and enterprise risk management (ERM).

Organizational managers need to identify, assess and respond to risks in order for the organization to achieve its goal. In the CMA exam, the focus on ERM model. You are most likely to get conceptual questions in this section.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

E. Investment Decisions

This section covers how management accountants help make important decisions whether to proceed with an investment, or to choose between investment alternatives. Topics include cash flow estimates, discounted cash flow concepts, net present value, internal rate of return, discounted payback, as well as risk analysis and real options.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

F. Professional Ethics

The exam content is based on the IMA Statement of Ethical Standards. Topics include ethical considerations for management accounting professionals, and for the organization as a whole.

The principles and standards are concise and easy to understand. Candidates should memorize the names of the 4 standards, and more importantly, to know how they are applied in real business situations.

An Understanding Of The Course Content Of CMA USA Part 2 Exams

Use following books for CMA Inter

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