successful study habits? What should you do during the time leading up to your test date? As we get into specific topics, it’s important to let you know beforehand that the entire CMA course is divided into two parts. Part One is based on Financial Planning, Performance, and Analytics. Part Two is all about Strategic Financial Management. In Part One, I will talk about Financial Planning, Performance, and Analytics. This material is covered in chapters three to eight. I start with chapter three on External Financial Reporting Decisions. This makes up fifteen percent of Part One of the exam. In this chapter, I will touch upon concepts related to different components of financial statements. They include: •
Balance sheets
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Income statements
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Statements of changes in equity
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Statements of cash flows
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Valuation of different assets and liabilities
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and operating and capital lease.
I will also discuss equity transactions, revenue recognition, revenue measurement, and the difference between US GAAP and IFRS. In chapter four, I will talk about planning, budgeting, and forecasting. This makes up twenty percent of the Part One syllabus. In this section, I will talk about the strategic planning process, budgeting concepts, annual profit plans, and supporting schedules. I will explain different types of budgeting, including activity based budgeting, project budgeting, and flexible budgeting. In this chapter, I also address concepts like strategic planning and analysis and forecasting techniques like regression analysis and learning curve analysis.
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