Exam Format
The CMA exam consists of two parts, and candidates have the flexibility to choose the order in which they take them. However, CMA certification applications are only possible after completing both parts and meeting other criteria outlined by the IMA. Each part comprises 100 multiple-choice questions (MCQs) and two essay scenarios, with the MCQs contributing 75% to the total score. To unlock the essay portion, candidates must answer at least 50% of the MCQs. It’s essential to note that passing both parts is a prerequisite for applying for CMA certification.
CMA Examination Part 1 : Financial Planning, Performance, and Analytics
Sections |
Description |
---|---|
External Financial Reporting |
It covers financial accounting basics, preparation of financial statements, asset and liability valuation, equity transaction impact, and differences between U.S. GAAP and IFRS. |
Planning, Budgeting, and Forecasting |
It encompasses annual profit planning, various budgeting types, top-level planning, and forecasting methods. |
Performance Management |
It analyzes financial statement items, variance analysis, responsibility accounting, and balanced scorecards. |
Cost Management |
It explores cost concepts, measurement, accumulation systems, overhead cost allocation, and operational efficiency topics. |
CMA Examination Part 2 : Strategic Financial Management
Sections |
Description |
---|---|
Financial Statement Analysis |
This includes interpretation and analysis of financial statements, market vs. book value, fair value accounting, cash-flow statement analysis, and earnings quality |
Corporate Finance |
This portion encompasses risk types, portfolio management, options and futures, long-term financing instruments, dividend policy, and factors influencing capital structure. |
Decision Analysis |
This segment will focus on relevant data concepts, cost-volume-profit analysis, make vs. buy decisions, pricing, and income tax implications for decision analysis. |
Risk Management |
It addresses operational, hazard, financial, and strategic risks. |
Investment Decisions |
This part will cover cash flow estimates, discounted cash flow concepts, income tax implications, ranking investment projects, and valuation models. |
Professional Ethics |
It explores ethical considerations for management accountants and organizations. |