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Exam Review

Key Facts: CMA Part 2 Exam

100 + 2

MCQs + Case-Based Sets

IMA CMA Handbook

360/500

Passing Score

Scaled score

150-200 hrs

Study Time

Recommended

100K+

CMA Holders

Worldwide, IMA

$545

Exam Fee

IMA, per part (professional)

4 hrs

Time Limit

MCQs + case-based questions

CMA Part 2 has 100 multiple-choice questions (MCQs) followed by 2 case-based question sets (essays in mainland China, Hong Kong, Taiwan and Japan), with a 4-hour time limit. A scaled score of 360 out of 500 is needed to pass. Part 2 covers financial statement analysis (20%), corporate finance (20%), business decision analysis (25%), enterprise risk management (10%), capital investment decisions (10%), and professional ethics (15%). The CMA credential is offered by the Institute of Management Accountants (IMA).

Sample CMA Part 2 Practice Questions

Try these sample questions to review concepts for the CMA Part 2 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1A company has current assets of $500,000 and current liabilities of $250,000. What is the company's current ratio?
A.0.5
B.1.0
C.2.0
D.2.5
Explanation: The current ratio is calculated as Current Assets ÷ Current Liabilities. In this case: $500,000 ÷ $250,000 = 2.0. This ratio indicates that the company has $2 of current assets for every $1 of current liabilities, suggesting good short-term liquidity. A current ratio above 1.0 generally indicates the company can meet its short-term obligations.
2Which of the following ratios measures a company's ability to meet its long-term obligations?
A.Current ratio
B.Quick ratio
C.Debt-to-equity ratio
D.Inventory turnover ratio
Explanation: The debt-to-equity ratio (Total Liabilities ÷ Total Shareholders' Equity) measures a company's long-term solvency and financial leverage. It indicates the proportion of debt financing relative to equity financing. The current and quick ratios measure short-term liquidity, while inventory turnover measures operational efficiency.
3A company reports net income of $120,000, but its cash flow from operations is only $80,000. Which of the following could explain this difference?
A.Decrease in accounts receivable
B.Increase in accounts payable
C.Gain on sale of equipment
D.Depreciation expense
Explanation: A gain on sale of equipment is added to net income but is deducted in the operating activities section because it relates to investing activities, not operations. This would cause net income to exceed cash flow from operations. Decreases in receivables and increases in payables would increase cash flow relative to net income, while depreciation is added back to net income (increasing cash flow).
4When analyzing earnings quality, which of the following would be a warning sign of potential manipulation?
A.Consistent growth in operating cash flow
B.Large increases in accounts receivable relative to sales growth
C.Stable gross profit margins over time
D.Increase in research and development expenses
Explanation: When accounts receivable grow faster than sales, it may indicate that a company is recognizing revenue prematurely or having difficulty collecting from customers. This is a red flag for earnings quality. Consistent operating cash flow growth, stable margins, and increased R&D investment are generally positive indicators of business health.
5A company has net sales of $1,000,000, cost of goods sold of $600,000, and average inventory of $100,000. What is the inventory turnover ratio?
A.6.0
B.10.0
C.4.0
D.0.6
Explanation: Inventory turnover is calculated as Cost of Goods Sold ÷ Average Inventory. Here: $600,000 ÷ $100,000 = 6.0. This means the company sells and replaces its inventory 6 times per year. A higher turnover generally indicates better inventory management, though excessively high turnover may indicate stockouts.
6Which ratio best measures how efficiently a company uses its assets to generate sales?
A.Gross profit margin
B.Return on equity
C.Total asset turnover
D.Price-to-earnings ratio
Explanation: Total asset turnover (Net Sales ÷ Average Total Assets) measures how efficiently a company uses its assets to generate revenue. Gross profit margin measures pricing power and cost control. Return on equity measures profitability relative to shareholders' investment. P/E ratio is a market valuation metric, not an efficiency measure.
7A company's return on assets (ROA) is 12% and its profit margin is 6%. What is the company's total asset turnover?
A.0.5
B.1.0
C.2.0
D.Cannot be determined from the information given
Explanation: Using the DuPont formula: ROA = Profit Margin × Total Asset Turnover. Therefore, Total Asset Turnover = ROA ÷ Profit Margin = 12% ÷ 6% = 2.0. This means the company generates $2 in sales for every $1 of assets, which is generally considered efficient.
8When comparing financial statements across companies, which of the following is the MOST important consideration?
A.Both companies should be in the same industry
B.Both companies should have the same fiscal year-end
C.Accounting policies and methods should be consistent
D.Both companies should be approximately the same size
Explanation: Consistent accounting policies are essential for meaningful comparison. Different depreciation methods, revenue recognition policies, or inventory valuation methods can significantly affect reported results. While industry similarity helps comparability, accounting consistency is more fundamental. Differences in size can be addressed through ratio analysis.
9A company reports the following: Net income $200,000, Interest expense $30,000, Tax expense $70,000, Total assets $1,500,000. What is the return on assets (ROA)?
A.13.3%
B.20.0%
C.15.3%
D.18.7%
Explanation: ROA = Net Income ÷ Average Total Assets = $200,000 ÷ $1,500,000 = 13.3%. Some analysts use EBIT or operating income in the numerator, but the standard ROA calculation uses net income. ROA measures how efficiently a company uses its assets to generate profit.
10Which of the following items would be classified as a non-recurring or special item that requires careful analysis?
A.Cost of goods sold
B.Research and development expenses
C.Restructuring charges
D.Salaries and wages
Explanation: Restructuring charges are typically non-recurring items that result from significant changes in business operations, such as plant closures, layoffs, or mergers. Analysts should examine these separately to understand ongoing operating performance. COGS, R&D, and salaries are normal recurring operating expenses.

About the CMA Part 2 Exam

CMA Part 2 covers Strategic Financial Management. It tests advanced financial management skills including financial statement analysis, corporate finance, decision analysis, risk management, investment decisions, and professional ethics. The CMA is globally recognized with over 100,000 certified professionals.

Exam sponsor: IMA (Prometric). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

4 hours

Passing Score

360/500

Exam / Certification Fees

$545 per part (professional member rate)

Exam sponsor website

Reported exam pass rate: Not published by IMA. IMA does not publish a current Part 2 pass rate Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

20%

Financial Statement Analysis

Ratio analysis, cash flow, earnings quality, special items, financial statement comparisons

20%

Corporate Finance

Cost of capital, capital structure, working capital, dividend policy, M&A, international finance

25%

Business Decision Analysis

CVP analysis, marginal analysis, relevant costs, pricing, constraints, make-or-buy decisions

10%

Enterprise Risk Management

Enterprise risk, COSO framework, risk assessment, portfolio risk, hedging strategies

10%

Capital Investment Decisions

Capital budgeting, NPV, IRR, payback, real options, post-implementation audits

15%

Professional Ethics

IMA Code of Ethics, ethical standards, conflict resolution, compliance, organizational ethics

Preparing for the CMA Part 2 Exam

What You Need to Know

  • Passing score: 360/500
  • Exam length: 100 questions
  • Time limit: 4 hours
  • Exam / certification fees: $545 per part (professional member rate) Official sources

Using Our Practice Resources

  • Work through all 200 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CMA Part 2: Suggested Study Strategy

1Master ratio analysis and financial statement interpretation — key for the 20% Financial Statement Analysis section
2Practice capital budgeting calculations: NPV, IRR, payback period, and profitability index
3Understand WACC calculation and components: cost of debt, preferred stock, and common equity
4Know CVP analysis formulas: break-even, target profit, margin of safety, and contribution margin
5Study the IMA Code of Ethics and practice applying ethical standards to scenarios
6Don't neglect the case-based questions — you must earn at least 50% on the MCQs to reach them, and they carry part of your score

Frequently Asked Questions

Does IMA publish a CMA Part 2 pass rate?

IMA does not publish a current pass rate for CMA Part 2. The exam has 100 MCQs followed by 2 case-based question sets over 4 hours, and you need a scaled score of 360 out of 500 to pass. Part 2 is often considered more strategic and conceptual than Part 1.

How hard is CMA Part 2?

CMA Part 2 is challenging. Decision Analysis (25% of exam) requires strong analytical skills for CVP and relevant cost problems. Corporate Finance involves complex calculations for WACC and capital budgeting. The Professional Ethics section (15%) tests application of IMA standards in scenarios. Plan for 150-200 hours of study.

What is on CMA Part 2?

CMA Part 2 covers: Financial Statement Analysis (20%), Corporate Finance (20%), Business Decision Analysis (25%), Enterprise Risk Management (10%), Capital Investment Decisions (10%), and Professional Ethics (15%). The exam has 100 MCQs (3 hours) and 2 case-based question sets (1 hour).

How long should I study for CMA Part 2?

Plan for 150-200 hours of study over 3-6 months. Focus on Decision Analysis (25% of exam) and Financial Statement Analysis/Corporate Finance (20% each). Practice NPV/IRR calculations, ratio analysis, and ethical decision-making frameworks. Practice case-based question sets (drag-and-drop, fill-in-the-blank, select-from-a-list and calculation tasks) for the second section.

Can I take CMA Part 2 before Part 1?

Yes, you can take CMA Part 2 before Part 1. There is no required order. Some candidates find Part 2 more intuitive if they have a finance background, while others prefer to take Part 1 first as it covers more foundational material. You must pass both parts within 3 years of entering the CMA program.