CMA Part 2 study guide: topics, plan and tips
By Haresh Ratnagrahi, Founder, HiPrep (CPA, FCA, CMA (US), CISA, CRISC)
CMA Part 2, Strategic Financial Management, covers financial statement analysis, corporate finance, decision analysis and risk, investment decisions and professional ethics. It rewards understanding over memorising, so learn why each formula works and practise with case-style questions.
Key takeaways
- Financial statement analysis: liquidity, profitability, leverage and efficiency ratios.
- Weeks 1–2: ratio analysis.
- Using nominal rates where real or after-tax rates are needed.
- Estimate the cash flows.
- IMA ethics questions test whether you can spot competence, confidentiality, integrity and credibility issues, and the right way to resolve them.
What Part 2 covers
Financial statement analysis: liquidity, profitability, leverage and efficiency ratios.
Corporate finance: risk and return, cost of capital, financing and working capital.
Decision analysis and risk management: relevant costs, pricing and enterprise risk.
Investment decisions: capital budgeting with NPV, IRR and payback.
Professional ethics under the IMA standards.
A 10-week study plan
Weeks 1–2: ratio analysis.
Weeks 3–4: risk, return and cost of capital.
Weeks 5–6: financing, working capital and decision analysis.
Weeks 7–8: capital budgeting.
Week 9: ethics and review.
Week 10: mocks and essays.
Where candidates lose marks
Using nominal rates where real or after-tax rates are needed.
Discounting the initial investment, which occurs at time zero.
Memorising formulas without knowing what they mean.
Capital budgeting in five steps
Estimate the cash flows. Choose a discount rate. Discount each flow. Subtract the initial investment. Accept the project if the NPV is greater than zero.
Ethics questions
IMA ethics questions test whether you can spot competence, confidentiality, integrity and credibility issues, and the right way to resolve them. Start with your own organisation’s policy, then escalate.
Exam facts at a glance
CMA (US) (Certified Management Accountant), overseen by IMA. 2: Exam parts. 4 hrs: Per part: 100 MCQs + 2 essays. 360: Passing score (0–500 scale). 3 yrs: To complete both parts from your first.
Part 1, Financial Planning, Performance and Analytics: Budgeting, performance management, cost management and controls. Main topics: External financial reporting decisions, Planning, budgeting and forecasting, Performance management, Cost management, Internal controls, Technology and analytics.
Part 2, Strategic Financial Management: Corporate finance, investment decisions, risk and ethics. Main topics: Financial statement analysis, Corporate finance, Decision analysis and risk, Investment decisions, Professional ethics.
The path from eligibility to certification
CMA (US): 1. Join IMA. IMA membership is part of registration. 2. Check entrance requirements. A bachelor’s degree, plus two years of relevant experience (before or within a window after passing). 3. Register and pay fees. Register for the exam through the IMA. 4. Book at Prometric. Schedule each part at a test centre near you. 5. Pass both parts. Within three years of passing your first part. 6. Complete the experience requirement. Then apply for your CMA certification.
Who it suits: Management accountants and cost accountants; FP&A, MIS and controllership professionals; Chartered and cost accountants adding a global credential; Finance graduates aiming for business-partnering roles. Careers it opens: FP&A and business finance; Controller and finance manager; Cost and management accounting; Strategy and corporate finance; CFO track.
Key terms explained
CMA: Certified Management Accountant: the IMA credential for management accounting, planning and financial strategy. The exam has two parts and the passing score is 360 out of 500.
IMA: The Institute of Management Accountants: the US body that grants the CMA and runs its entrance requirements and fees.
CMA Part 2: Strategic Financial Management: financial statement analysis, corporate finance, decision analysis, risk, investment decisions and ethics.
Budgeting: Turning plans into numbers: sales, production, costs and cash. A core CMA Part 1 topic.
Capital budgeting: Evaluating long-term investments using methods like net present value, internal rate of return and payback. A CMA Part 2 topic.
Study plan: A schedule that maps topics and practice to your exam date and weekly hours, ideally adjusting when you fall behind.
More questions candidates ask
Which should I pick: CPA, CMA or EA? CPA suits audit, reporting and global accounting careers. CMA suits management accounting, FP&A and finance leadership. EA suits US tax and IRS representation, and is the quickest to complete. Our counsellors will map one to your background and goals for free.
Can I take these exams from outside the US? Yes. The CPA, CMA and EA exams are available at Prometric test centres in many countries, including India, the Middle East and Asia-Pacific. Eligibility and registration run through the relevant body: a US state board for CPA, IMA for CMA and the IRS for EA.
Do I need a commerce degree? It depends on the exam. CPA requires a degree plus accounting and business credit hours, which vary by state. CMA requires a bachelor’s degree plus experience. EA has no degree requirement. Book a free eligibility check and we will tell you exactly where you stand.
What are the passing scores? CPA: 75 on a 0–99 scale. CMA: 360 on a 0–500 scale. EA: 105 on a 40–130 scale. All are scaled scores, not percentages.
How HiPrep can help
HiPrep is an exam-prep provider for the CPA (US), CMA (US) and Enrolled Agent exams. Every answer is built step by step, cell by cell, so you see how a result is reached and not only what it is. Explanations are available in English, Hindi, Tamil, Telugu and Kannada, and a mentor is behind the platform for doubts.
You get a Prometric-style simulator with tutor and exam modes, full-length mock exams with a scaled-score estimate and topic breakdown, layered books, one-page revision notes built from your mistakes, flashcards, an AI tutor that hints before it tells, and a study plan that adapts to your exam date and weekly hours.
Start with the free diagnostic: 45 minutes and a topic-by-topic report that shows where you stand before you spend anything.
Frequently asked questions
Do I need a finance background for Part 2?
Not necessarily. Part 2 builds from basics, but allow extra time for corporate finance if it is new to you.
Which formulas matter most?
NPV, the logic of IRR, WACC, the key ratios and relevant-cost rules appear again and again.
Sources and official references
About the author
Haresh Ratnagrahi, Founder, HiPrep (CPA, FCA, CMA (US), CISA, CRISC). Haresh has spent 30+ years in corporate finance, M&A and teaching, including as a professor at Sydenham College of Commerce and as founder of the Finance & Accounts Learning Academy at EXL, where he trained more than 6,000 employees. He founded HiPrep to give CPA, CMA and EA candidates clear teaching, a real exam simulator and mentoring.