CMA Part 2: syllabus, format and where to start
CMA Part 2 covers Strategic Financial Management. Business decision analysis has the largest weight at 25%, followed by financial statement analysis and corporate finance at 20% each. Risk, investment decisions and ethics complete the syllabus.
Part 2 · Strategic financial management
- Financial Statement Analysis20%
- Corporate Finance20%
- Business Decision Analysis25%
- Enterprise Risk Management10%
- Capital Investment Decisions10%
- Professional Ethics15%
Bar scale: 0-100% of this part. Curriculum weights, not sample coverage.
| Starting point | Part 2 focus | Your next action |
|---|---|---|
| Scope | Financial interpretation, funding and choices | Use the domain map below to identify unfamiliar tasks. |
| Exam | 100 MCQs followed by two scenario sets; four hours | Check the regional CBQ/essay distinction in the format section. |
| Preparation | Link cash flows, relevant costs and risk | Work the example, then attempt fresh questions without notes. |
What you need to do in Part 2
Treat the syllabus as a set of things you can explain and calculate. Recognizing a chapter title does not show that you can solve a fresh problem.
| Domain | Weight | Practical checkpoint |
|---|---|---|
| Financial Statement Analysis | 20% | Interpret ratios, cash flows and the drivers behind changes. |
| Corporate Finance | 20% | Evaluate financing costs, liquidity and working-capital choices. |
| Business Decision Analysis | 25% | Compare relevant alternatives using contribution, constraints and incremental costs. |
| Enterprise Risk Management | 10% | Assess uncertainty, risk responses and retained exposure. |
| Capital Investment Decisions | 10% | Appraise dated incremental cash flows and test material assumptions. |
| Professional Ethics | 15% | Identify conflicts, communicate limitations and use appropriate resolution channels. |
Work one Part 2 decision: invest or decline
Compare cash flows at the same point in time. Accounting profit and undiscounted payback answer different questions from NPV.
Original worked example
A project costs $100,000 today and returns $60,000 at the end of each of the next two years. The required return is 10%; ignore tax and residual value.
NPV = -$100,000 + $60,000 / 1.10 + $60,000 / 1.10² = $4,132.23.
The positive NPV supports acceptance under these assumptions. Test the forecast and risk before treating the estimate as a decision; no particular cash flow is guaranteed.
Follow one decision through the Part 2 subjects
Consider a business deciding whether to expand a product line. Financial statement analysis establishes the current position and tests whether recent profit is supported by cash. Business decision analysis separates incremental revenue and costs from historical expenditure or unchanged allocations.
Corporate finance asks how expansion will be funded and how financing affects liquidity and risk. The capital-investment method places project cash flows on a timeline. Enterprise risk management examines adverse outcomes and possible responses. Ethics requires the decision paper to communicate material assumptions and conflicts honestly.
This sequence explains why memorizing a formula in isolation is not sufficient. A correct discounting calculation can still be wrong if the cash flows contain sunk costs. A profitable forecast can still create a funding gap. Practise carrying a consistent set of assumptions from analysis through the recommendation.
Distinguish calculation fluency from decision quality
Financial analysis experience can help, but the syllabus also asks for cost decisions, risk and ethical judgment. Test whether you can explain why a measure fits the task and what could invalidate the conclusion. A formula card will not tell you whether the comparison uses compatible inputs.
For each practice answer, state the decision, the relevant cash flow or resource and one material assumption. That short explanation exposes problems such as confusing profit with cash, using a total allocated cost in a marginal decision or applying the wrong time period.
Original worked example
A service earns $80 revenue and incurs $50 variable cost per engagement. A spare team can accept 100 extra engagements with $1,000 additional supervision cost. Ignore taxes and displacement.
Incremental profit is 100 × ($80 - $50) - $1,000 = $2,000.
The answer depends on spare capacity and no lost regular business. If accepting the work displaces $2,500 of other contribution, the decision changes to a $500 loss.
The format for your booked sitting
Each part is a separate four-hour exam. Use the current syllabus for scope and your appointment for the response format.
For 2027, most English-language CMA sittings use case-based questions. IMA Japan announces CBQs for Japanese-language exams from January 2027. Mainland China, Taiwan and English-language Japan require a separate check of the current local registration and appointment format.
| Stage | Both exam parts | What this means |
|---|---|---|
| Multiple choice | 100 MCQs · 3 hours | Average budget: 1.8 minutes per question. Complete this section before moving on. |
| Scenario section | 2 case-based sets · 1 hour total | CBQs are standard for most 2027 English-language sittings. |
| 2027 regional formats | Check language as well as location | For 2027, most English-language CMA sittings use case-based questions. IMA Japan announces CBQs for Japanese-language exams from January 2027. Mainland China, Taiwan and English-language Japan require a separate check of the current local registration and appointment format. |
| Section access | At least 50% on the MCQ section | This unlocks scenarios; it is not the passing standard. Once you leave MCQs, you cannot return. |
| Overall result | 360 on a 0-500 scaled score | A scaled score is not a percentage of questions correct. |
Choose your first week of work
Start with financial statements and the difference between earnings and cash flow. Then connect working capital, financing and investment decisions. Practise ethics with concrete reporting choices, not definition recall alone.
| If you already know... | Test it with... | If it breaks down... |
|---|---|---|
| Ratios | Two firms with different accounting choices | Explain comparability limits before ranking them. |
| Discounting | A timeline with working-capital recovery | Put every incremental cash flow at its correct date. |
| Contribution margin | A constrained production choice | Compare contribution per scarce resource, not per unit. |
Common questions
- Must I take Part 2 first?
- No. IMA permits either order. Choose using your recent experience, available study time and a short sample from both parts.
- Does this cover the whole Part 2 exam?
- This is an orientation and a worked example. Use the linked official outline and Learning Outcome Statements for the complete scope, then practise across every domain.
- Are the free PDFs full mock exams?
- No. Each part PDF contains 20 selected MCQs with explained answers. They do not replace complete syllabus coverage or the scenario portion.
Sources and editorial notes
Source check: . MiloPrep editorial team. Official facts and provider offer claims are identified below. Study schedules, examples and recommendations are editorial; they are not official questions, a required study-hour total or a passing guarantee.
- IMA Content Specification Outlines (PDF) ↗
Effective September 2024; page 5 lists the twelve domain weights. Use the newer handbook for question format.
- IMA CMA Handbook, March 2026 (PDF) ↗
Pages 4-6: certification deadlines; 7-9: format, windows, older registration cutoffs and appointment changes; 10-13: exam day, scoring and reports. The current CBQ purchase page describes a different, eight-month authorization period.
- IMA Learning Outcome Statements (PDF) ↗
Expected knowledge and application within each domain; not a question bank or a study-hour requirement.
- IMA CMA frequently asked questions ↗
Retakes, reports and the fee section: $300/$545 professional; $225/$407 student or academic. A separate older retake paragraph lists conflicting prices. Verify the applicable member price at checkout.
- IMA Japan Chapter: January 2027 CBQ announcement ↗
Japanese-language CBQs announced from January 2027. The former campaign schedule now redirects; use the Japan Chapter and current local registration for dates. Do not generalize to English-language exams.
MiloPrep is an independent study resource and is not affiliated with or endorsed by IMA or the providers discussed. Editorial methodology · About the editorial team.