Simply study and remember these CMA boot camp questions

Each and every candidate that go through the CMA exam feel that, CMA test questions are altogether different from the CMA digital book and course books. We have viewed this issue in a serious way. We have gathered the most refreshed, most recent, and legitimate CMA cheat sheets and made an information base to assist up-and-comers with breezing through tests with excellent grades.

Exam Code: CMA Practice test 2022 by team
CMA Certified Management Accountant (CMA)

Content Specification Outlines
CMA® (Certified Management Accountant) Examinations
Part 1 - Financial Planning, Performance, and Analytics

A. External Financial Reporting Decisions (15% - Levels A, B, and C)
1. Financial statements
a. Balance sheet
b. Income statement
c. Statement of changes in equity
d. Statement of cash flows
e. Integrated reporting
2. Recognition, measurement, valuation, and disclosure
a. Asset valuation
b. Valuation of liabilities
c. Equity transactions
d. Revenue recognition
e. Income measurement
f. Major differences between U.S. GAAP and IFRS
B. Planning, Budgeting, and Forecasting (20% - Levels A, B, and C)
1. Strategic planning
a. Analysis of external and internal factors affecting strategy
b. Long-term mission and goals
c. Alignment of tactics with long-term strategic goals
d. Strategic planning models and analytical techniques
e. Characteristics of a successful strategic planning process
2. Budgeting concepts
a. Operations and performance goals
b. Characteristics of a successful budget process
c. Resource allocation
d. Other budgeting concepts
3. Forecasting techniques
a. Regression analysis
b. Learning curve analysis
c. Expected value
Part 1 - Financial Planning, Performance, and Analytics
4. Budgeting methodologies
a. Annual business plans (master budgets)
b. Project budgeting
c. Activity-based budgeting
d. Zero-based budgeting
e. Continuous (rolling) budgets
f. Flexible budgeting
5. Annual profit plan and supporting schedules
a. Operational budgets
b. Financial budgets
c. Capital budgets
6. Top-level planning and analysis
a. Pro forma income
b. Financial statement projections
c. Cash flow projections
C. Performance Management (20% - Levels A, B, and C)
1. Cost and variance measures
a. Comparison of genuine to planned results
b. Use of flexible budgets to analyze performance
c. Management by exception
d. Use of standard cost systems
e. Analysis of variation from standard cost expectations
2. Responsibility centers and reporting segments
a. Types of responsibility centers
b. Transfer pricing
c. Reporting of organizational segments
3. Performance measures
a. Product profitability analysis
b. Business unit profitability analysis
c. Customer profitability analysis
d. Return on investment
e. Residual income
f. Investment base issues
g. Key performance indicators (KPIs)
h. Balanced scorecard
D. Cost Management (15% - Levels A, B, and C)
1. Measurement concepts
a. Cost behavior and cost objects
b. genuine and normal costs
c. Standard costs
d. Absorption (full) costing
e. Variable (direct) costing
f. Joint and by-product costing
2. Costing systems
a. Job order costing
b. Process costing
c. Activity-based costing
d. Life-cycle costing
3. Overhead costs
a. Fixed and variable overhead expenses
b. Plant-wide vs. departmental overhead
c. Determination of allocation base
d. Allocation of service department costs
4. Supply chain management
a. Lean resource management techniques
b. Enterprise resource planning (ERP)
c. Theory of Constraints
d. Capacity management and analysis
5. Business process improvement
a. Value chain analysis
b. Value-added concepts
c. Process analysis, redesign, and standardization
d. Activity-based management
e. Continuous improvement concepts
f. Best practice analysis
g. Cost of quality analysis
h. Efficient accounting processes
E. Internal Controls (15% - Levels A, B, and C)
1. Governance, risk, and compliance
a. Internal control structure and management philosophy
b. Internal control policies for safeguarding and assurance
c. Internal control risk
d. Corporate governance
e. External audit requirements
2. System controls and security measures
a. General accounting system controls
b. Application and transaction controls
c. Network controls
d. Backup controls
e. Business continuity planning
F. Technology and Analytics (15% - Levels A, B, and C)
1. Information systems
a. Accounting information systems
b. Enterprise resource planning systems
c. Enterprise performance management systems
2. Data governance
a. Data policies and procedures
b. Life cycle of data
c. Controls against security breaches
3. Technology-enabled finance transformation
a. System development life cycle
b. Process automation
c. Innovative applications
4. Data analytics
a. Business intelligence
b. Data mining
c. Analytic tools
d. Data visualization
A. Financial Statement Analysis (20% - Levels A, B, and C)
1. Basic financial statement analysis
a. Common size financial statements
b. Common base year financial statements
2. Financial ratios
a. Liquidity
b. Leverage
c. Activity
d. Profitability
e. Market
3. Profitability analysis
a. Income measurement analysis
b. Revenue analysis
c. Cost of sales analysis
d. Expense analysis
e. Variation analysis
4. Special issues
a. Impact of foreign operations
b. Effects of changing prices and inflation
c. Impact of changes in accounting treatment
d. Accounting and economic concepts of value and income
e. Earnings quality
Part 2 - Strategic Financial Management
B. Corporate Finance (20% - Levels A, B, and C)
1. Risk and return
a. Calculating return
b. Types of risk
c. Relationship between risk and return
2. Long-term financial management
a. Term structure of interest rates
b. Types of financial instruments
c. Cost of capital
d. Valuation of financial instruments
3. Raising capital
a. Financial markets and regulation
b. Market efficiency
c. Financial institutions
d. Initial and secondary public offerings
e. Dividend policy and share repurchases
f. Lease financing
4. Working capital management
a. Working capital terminology
b. Cash management
c. Marketable securities management
d. Accounts receivable management
e. Inventory management
f. Types of short-term credit
g. Short-term credit management
5. Corporate restructuring
a. Mergers and acquisitions
b. Other forms of restructuring
6. International finance
a. Fixed, flexible, and floating exchange rates
b. Managing transaction exposure
c. Financing international trade
C. Decision Analysis (25% - Levels A, B, and C)
1. Cost/volume/profit analysis
a. Breakeven analysis
b. Profit performance and alternative operating levels
c. Analysis of multiple products
2. Marginal analysis
a. Sunk costs, opportunity costs, and other related concepts
b. Marginal costs and marginal revenue
c. Special orders and pricing
d. Make vs. buy
e. Sell or process further
f. Add or drop a segment
g. Capacity considerations
3. Pricing
a. Pricing methodologies
b. Target costing
c. Elasticity of demand
d. Product life-cycle considerations
e. Market structure considerations
D. Risk Management (10% - Levels A, B, and C)
1. Enterprise risk
a. Types of risk
b. Risk identification and assessment
c. Risk mitigation strategies
d. Managing risk
E. Investment Decisions (10% - Levels A, B, and C)
1. Capital budgeting process
a. Stages of capital budgeting
b. Incremental cash flows
c. Income tax considerations
d. Evaluating uncertainty
2. Capital investment analysis methods
a. Net present value
b. Internal rate of return
c. Payback
d. Comparison of investment analysis methods
F. Professional Ethics (15% - Levels A, B, and C)
1. Business ethics
a. Moral philosophies and values
b. Ethical decision making
2. Ethical considerations for management accounting and financial management professionals
a. IMAs Statement of Ethical Professional Practice
b. Fraud triangle
c. Evaluation and resolution of ethical issues
3. Ethical considerations for the organization
a. Organizational factors and ethical culture
b. IMAs Statement on Management Accounting, “Values and Ethics: From Inception to Practice”
c. Ethical leadership
d. Legal compliance
e. Responsibility for ethical conduct
f. Sustainability and social responsibility

Certified Management Accountant (CMA)
Financial Management test Questions
Killexams : Financial Management test Questions - BingNews Search results Killexams : Financial Management test Questions - BingNews Killexams : Ask Yourself These 5 Questions Before You Look for a Financial Advisor

A previous version of this article appeared on Aug. 3, 2017.

Think back to the last time you bought a car. Did you buy the same car your sister owns because she likes hers? Did you shop for $16,000 Chevrolet Sparks, $100,000 Range Rovers, and everything in between? Did you head into the dealer with no knowledge of prices, fuel economy, or vehicle safety features?

Heck no, right? Buying a car isn't for Sunday drivers, so you no doubt started the process by thinking about your needs, wants, and budget. You then homed in on two or three vehicles that fit your criteria. You probably did a little bit of homework, reading up on which cars receive the best ratings and taking a test drive or two. Only then did you steel yourself for the trip into the dealer to make the buy, praying for the shortest, most painless car purchase possible.

What's surprising is that many investors take the former tack when choosing a financial advisor, being amazingly haphazard even though, over a lifetime, their financial-advice engagement could be far more costly than a car. They begin by soliciting advice on advisors from people who may or may not know what they're talking about and who may have needs that are completely different from their own. They don't let their own needs, wants, and budget drive the process, and they often don't do much homework.

Why are investors so laissez-faire about finding financial advice?

A key reason is that the financial advisory profession is an awfully big and confusing tent. It encompasses people who are focused primarily on investments and those who construct comprehensive financial plans. Commission-based brokers can call themselves financial advisors, but so do many fee-only folks who never touch commissions.

The industry hasn't necessarily helped distinguish the flames of confusion. Despite efforts to require all advisors to be fiduciaries—that is, be legally bound to serve their clients' interests ahead of their ownsome parts of the industry have pushed back against such a standard. Today, the financial advisory space remains a wild west of confusing titles, designations, and compensation schemes.

The good news is that selecting an advisor who's a good fit for your needs doesn't have to be an overwrought process. A lot of guides to choosing an advisor focus on questions you should ask the advisorcompensation schemes, designations, and whether the advisor is a fiduciary. Those are hugely important questions, well worth getting to the bottom of. But the real first step when seeking an advisor is to think through what you're looking for: your goals in seeking an advisor, what sort of relationship makes sense given those goals, and how much help you expect to need on an ongoing basis, among other issues. Armed with that information, you can then seek advisors who fit your self-made description.

Here are the key questions to ask yourself.

  1. Are you seeking help with your whole financial life or your investment portfolio?
  2. Are you seeking advice on a few specific issues or do you need help with your whole plan? Do you need one-time/periodic help or ongoing assistance?
  3. How hands-off (or hands-on) do you wish to be?
  4. How comfortable are you with technology?
  5. Do you have a specific investment philosophy you'd like to see your advisor employ?

1. Are you seeking help with your whole financial life or your investment portfolio?

A key fissure among financial advisors is focus. Many financial advisorsoften called investment advisors or wealth managersdevote a lot of time and energy to managing portfolios: determining asset allocation, selecting investments, and so forth. In fact, that may be the one and only thing they will handle for you, or they may tackle nonportfolio aspects of your financial life but do so only tangentially.

Another big contingent of advisorsfinancial plannersconcern themselves with holistic financial planning: setting and quantifying financial goals, paying down debt, determining insurance needs, and investing appropriately for college and retirement, among other tasks. Financial planners know investments, too, but investment selection and portfolio monitoring aren't all they do.

Those distinctions may seem obvious to people inside the investment industry, but many consumers aren't aware of them. They might think of financial planning as interchangeable with investment management and advice. And it's true that the lines between the professions have grown blurrier in the past few years. Investment advisors are increasingly focused on providing holistic financial planning, as some consumers consider the investment-advice piece to be more or less a commodity and are seeking broader expertise. It's also true, as I discussed here, that investors sometimes think they have a "portfolio emergency" when in fact their investments aren't the main thing that ails their financial plans.

If you're seeking holistic planning advice: A financial planner is appropriate if you're seeking broad financial-planning guidanceon your investment portfolio, but other parts of your plan as well. Seek out those who call themselves financial planners and ask prospective planners if they've earned the certified financial planner or chartered financial consultant designation. Many financial planners are also fiduciaries; to be sure, ask the planner about that before hiring them.

If you need investment advice first and foremost: If you think your financial plan is in good shape overall but you need help selecting and overseeing your investments, an investment advisor may be the way to go. Such individuals are frequently registered investment advisors or are employed by a firm that is; these advisors and advisory firms are held to a fiduciary standard. The gold-standard designation for this type of advisor is the chartered financial analyst.

2. Are you seeking advice on a few specific issues or do you need help with your whole plan? Do you need one-time/periodic help or ongoing assistance?

Once you've determined whether you're looking for investment advice or financial-planning advice, the next step is to consider what specific items you need help with. Decide if you're seeking advice on a few specific issues, or problem spots, in your plan, or if you expect to need ongoing assistance. Knowing whether your needs are surgical or more encompassing can help you be an efficient consumer of advisory resources.

If you're seeking advice on just a few issues: If your needs are focusedfor example, you'd like a review of the viability of your retirement assets given your anticipated spending but then you'll be set for the next five years or soyou'll want to seek an advisor who is willing to work with you on a per-project basis. Financial planners are more likely to employ hourly or per-engagement billing than are investment advisors. Hourly rates for financial planners often range from $200 to $400.

If you're seeking broad and ongoing financial help: If you expect that your advice needs will be ongoing, paying a recurrent feesay, annuallymay be more cost-effective than paying for advice on an a la carte basis. Most advisors who charge in this way levy their fees as a percentage of your assets; the percentage may decrease the more assets you have under management with an advisor. Both investment advisors and financial advisors charge for services in this way; the average rate for a $1 million portfolio is 1% of assets under management, but people with larger portfolios are apt to pay less. Another model that is gaining traction is the so-called subscription model, whereby you pay your advisor a monthly or annual dollar-based fee rather than a percentage of your assetsmuch as you would do with a gym membership or cable TV. 

3. How hands-off (or hands-on) do you wish to be?

In a related vein, ask yourself how much of a role you'd like to play in managing your finances going forward. Do you want to be part of the planning process and handle certain parts of your financial plan yourself, or would you like to delegate most of the decision-making?

If you're willing to handle certain aspects of your plan on your own: Obviously, the more work you're willing to do yourself, the more you should be able to shave off the advisory fees you pay. Investors who would like to do at least some of the heavy lifting for their plans should consider paying an advisor on an hourly or per-project basis rather than an all-in fee for encompassing services.

If you'd like to delegate: This setup can make sense for very busy people who simply don't have the time or inclination to participate in the planning/investment-management process. It's also something to consider for older investors who are concerned about the possibility of cognitive decline and its impact on their ability to manage their own finances or investment portfolios. Paying an advisor a percentage of assets annually or hiring one on a retainer basis can make sense for delegators.

4. How comfortable are you with technology?

While many advisors still meet face to face with their clients in their offices, technology is changing the advice industry fast. Robo-advisors employ computer algorithms to deliver often-very-low-cost investment advice. Most human advisors also rely heavily on various software programs to craft their client plans. Many advisors are also employing technology to facilitate interactions with their clients. For example, they may use portals to share information with their clients (and vice versa), meet with them via video conference, and respond to client queries via text message.

If you're very comfortable with technology: You may be able to shave your investment-management fees by employing some type of technology-driven advice such as a robo-advisor. Some financial planners employ a hybrid model, charging their clients for customized financial-planning advice while outsourcing the investment-management piece to a very low-cost robo-advisor. 

Even if cost-cutting isn't your main goal, technology such as video conferencing can enable you to meet with advisors who specialize in a specific area, such as financial planning for small-business owners, even if they don't live in your same geographic location.

If you'd like more face-to-face interaction: Focus your search on financial advisors who work in your same locale. The website allows you to search for fee-only financial planners by geography.

5. Do you have a specific investment philosophy you'd like to see your advisor employ?

Are you a believer in the benefits that can accrue to index funds and exchange-traded funds thanks to their often-low costs and tax efficiency? Or do you like to employ actively managed funds and/or individual stocks in the hopes of beating the market? Do you want your advisor to be strategic in managing your asset allocation (that is, long-term and hands-off) or more tactical in strategy? Thinking through your investment beliefs and articulating them to a prospective advisor is a crucial step, especially if you're leaning on the advisor for ongoing investment guidance.

If you have a specific investment philosophy you'd like to see the advisor employ:If you're reading, it’s a good bet that you have developed a set of investment beliefs that you'd like to see embedded in your plan, even if you're delegating the specific decision-making to an advisor. Be sure to quiz any prospective advisors of their investment approach.

If you're open to allowing the investment advisor to employ their own strategy:Even if you don't have a strong view of how you'd like your assets to be managed, it's still important to ask some questions about strategy. Is the advisor clear and transparent about the approach? Does the advisor employ low-cost funds or more-expensive ones? How much attention does the advisor pay to tax efficiency? Taking the time to understand your advisor's strategy can help you stick with the program through varying market conditions.

Mon, 10 Oct 2022 12:01:00 -0500 Christine Benz en text/html
Killexams : 5 Quick and Dirty Questions to Pick a Financial Adviser

Registered adviser, fiduciary, independent adviser, investment adviser representative, RIA, licensed, designated, unbiased, what does it all mean? As an investor seeking an adviser, it can certainly be confounding.

Various types of licenses, designations, financial industry jargon and affiliation options are a lot for anyone to digest. Twenty-two years of helping people understand it all has led me to a profoundly simple list of questions to help you decide if an adviser is right for you. Here it is:

  1. Do you know them? (Where they introduced through a trusted friend, family member or other adviser?)
  2. Do you like them?
  3. Are they patient with you?
  4. Is s/he a CFP® professional?
  5. Does s/he have at least 10 years of experience?