Part 2: Financial Decision Making
- Includes access to the Online Test Bank, which contains over 1,000 multiple-choice questions
- Features sample essay questions, knowledge checks, exam tips, and practice questions
- Multiple-choice question feedback helps CMA candidates focus on areas where they need the most work
- Helps candidates prepare a solid study plan with exam tips
- Focuses on important ratios and other analytical tools used to evaluate an organization's financial health
- Examines key concepts in corporate finance
- Reviews fundamental information about the decision-making process
Feature section examines Financial Statement Analysis, Corporate Finance, Decision Analysis and Risk Management, Investment Decisions, and Professional Ethics
Based on the CMA body of knowledge developed by the Institute of Certified Management Accountants (ICMA), Wiley CMA Learning System Exam Review 2013 features content derived from the exam Learning Outcome Statements (LOS). Passing the CMA exam on your first attempt is possible. We'd like to help.
IMA, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 65,000 members in 120 countries and 200 local chapter communities. IMA provides localized services through its offices in Montvale, NJ, USA; Zurich, Switzerland; Dubai, UAE; and Beijing, China. For more information about IMA, please visit www.imanet.org.
Table of Contents:
Acknowledgements of Subject Matter Experts ix Candidate Study Information xi
How to Use the CMA Learning System xv
Create a Study Plan xix
Introduction 1
Section A
Financial Statement Analysis 3
Topic 1: Basic Financial Statement Analysis 5
Topic 2: Financial Performance Metrics—Financial Ratios 17
Topic 3: Profi tability Analysis 37
Topic 4: Analytical Issues in Financial Accounting 61
Practice Questions: Financial Statement Analysis 81
Section B
Corporate Finance 91
Topic 1: Risk and Return 93
Topic 2: Managing Financial Risk 113
Topic 3: Financial Instruments 121
Topic 4: Cost of Capital 161
Topic 5: Managing Current Assets 179
Topic 6: Raising Capital 215
Topic 7: Corporate Restructuring 235
Topic 8: International Finance 243
Practice Questions: Corporate Finance 263
Section C
Decision Analysis and Risk Management 273
Topic 1: Cost/Volume/Profi t Analysis 275
Topic 2: Marginal Analysis 297
Topic 3: Pricing 313
Topic 4: Risk Assessment 343
Practice Questions: Decision Analysis and Risk Management 359
Section D
Investment Decisions 371
Topic 1: Capital Budgeting Process 373
Topic 2: Discounted Cash Flow Analysis 389
Topic 3: Payback and Discounted Payback 403
Topic 4: Ranking Investment Projects 409
Topic 5: Risk Analysis in Capital Investment 417
Topic 6: Valuation 427
Practice Questions: Investment Decisions 455
Section E
Professional Ethics 465
Topic 1: Ethical Considerations for the Organization 467
Practice Questions: Professional Ethics 481
Essay Exam Support Materials 483
Essay Exam Study Tips 486
Examples of Essay Question Answers 488
Practice Essay Questions and Answers 498
Answers to Section Practice Questions 557
Appendix A: Time Value of Money Tables 623
Appendix B: ICMA Learning Outcome Statements–Part 2 629
Bibliography 645
Registration for the Wiley CMA Learning
System Exam Review 649
Index 653