CMA Part 2 Syllabus
CMA Part 2 syllabus is mainly related to financial decision making. Important topics are ratio analysis, corporate finance and ethics.
CMA Part 2 Syllabus Financial Decision Making | Percentage |
Financial Statement Analysis | 25% |
Corporate Finance | 20% |
Decision Analysis | 20% |
Risk Management | 10% |
Investment Decisions | 15% |
Professional Ethics | 10% |
Financial Statement Analysis (25%)
- Basic Financial Statement Analysis
- Common size financial statements
- Common base year financial statements
- Financial Ratios
- Liquidity
- Leverage
- Activity
- Profitability
- Market
- Profitability analysis
- Income measurement analysis
- Revenue analysis
- Cost of sales analysis
- Expense analysis
- Variation analysis
- Special issues
- Impact of foreign operations
- Effects of changing prices and inflation
- Off-balance sheet financing
- Impact of changes in accounting treatment
- Accounting and economic concepts of value and income
- Earnings quality
Corporate Finance (20%)
- Risk and return
- Calculating return
- Types of risk
- Relationship between risk and return
- Long-term financial management
- Term structure of interest rates
- Types of financial instruments
- Cost of capital
- Valuation of financial instruments
- Raising capital
- Financial markets and regulation
- Market efficiency
- Financial institutions
- Initial and secondary public offerings
- Dividend policy and share repurchases
- Lease financing
- Working capital management
- Working capital terminology
- Cash management
- Marketable securities management
- Accounts receivable management
- Inventory management
- Types of short-term credit
- Short-term credit management
- Corporate restructuring
- Mergers and acquisitions
- Bankruptcy
- Other forms of restructuring
- International finance
- Fixed, flexible, and floating exchange rates
- Managing transaction exposure
- Financing international trade
- Tax implications of transfer pricing
Decision Analysis (20%)
- Cost/volume/profit analysis
- Breakeven analysis
- Profit performance and alternative operating levels
- Analysis of multiple products
- Marginal analysis
- Sunk costs, opportunity costs and other related concepts
- Marginal costs and marginal revenue
- Special orders and pricing
- Make versus buy
- Sell or process further
- Add or drop a segment
- Capacity considerations
- Pricing
- Pricing methodologies
- Target costing
- Elasticity of demand
- Product life cycle considerations
- Market structure considerations
Risk Management (10%)
- Enterprise risk
- Types of risk
- Risk identification and assessment
- Risk mitigation strategies
- Managing risk
Investment Decisions (15%)
- Capital budgeting process
- Stages of capital budgeting
- Incremental cash flows
- Income tax considerations
- Discounted cash flow analysis
- Net present value
- Internal rate of return
- Comparison of NPV and IRR
- Payback and discounted payback
- Uses of payback method
- Limitations of payback method
- Discounted payback
- Risk analysis in capital investment
- Sensitivity and scenario analysis
- Real options
Professional Ethics (10%)
- Ethical considerations for management accounting and financial management professionals
- IMA’s “Statement of Ethical Professional Practice”
- Fraud triangle
- Evaluation and resolution of ethical issues
- Ethical considerations for the organization
- IMA’s Statement on Management Accounting, “Values and Ethics: From Inception to Practice”
- S. Foreign Corrupt Practices Act
- Corporate responsibility for ethical conduct

Namita Das
VP Academics
CMA (US) – CPA (US)