CMA Exam Academy - Pass the Exam on Your First Try!’s Post

The CMA test bank is an online software that provides access to more than 4,000 multiple-choice questions. These questions are selected from previous years' CMA exams, providing an exact representation of CMA test questions. This is one of the best-proven ways to quickly conquer both the knowledge and skills needed to pass the exam. Get familiar with the test format, spend time in the test bank each day to shore up areas of weakness, and ensure you have the right knowledge to pass the test. Click here to learn more: https://bit.ly/4169I7A #cmacoach #cmaexamacademy #cmaexam

Managerial vs Financial Accounting Let's dissect the details together 🔍 1️⃣ Users FA serves a broad audience including investors, creditors, regulatory authorities, and even competitors. MA caters to an internal audience. It serves department heads, managers, and decision-makers within the organization. 2️⃣ Focus FA is primarily about the past; it records, categorizes, and reports past transactions. MA is forward-looking, providing forecasts, budgets, and scenario analyses to guide future decision-making. 3️⃣ Regulation & Standards FA is tightly regulated, following strict standards like GAAP or IFRS. MA isn't restricted by external standards, allowing for greater flexibility to cater to the unique needs of the business. 4️⃣ Detail of Information FA reports generally focus on the business as a whole. MA reports can be as detailed as needed. They may focus on products, departments, activities, or any segment of the business. 5️⃣ Frequency of Reporting FA operates in predefined periods (monthly, quarterly, annually). MA isn't bound by such timelines and can produce reports as frequently as required – daily, weekly, or even in real-time. 6️⃣ Verification FA requires auditing to ensure accuracy and compliance. MA, as it's for internal use, typically doesn’t require a formal audit process although it’s highly encouraged. 7️⃣ Objective FA aims to present an accurate and complete picture of the financial position and performance of the company. MA focuses on providing information to facilitate planning, controlling, and decision-making. —--------------- Managerial & financial accounting are two sides of the same coin Each crucial in its unique way for the financial health of a business 👉 Did I miss anything? Drop your insights below!👇 —--------------- Hi! I’m Nathan Liao, Founder & CEO of: 🚀 CMA Exam Academy dot com - Pass the CMA exam on your first attempt! - 16-week Accelerator program (link in bio) - Students in 120 countries. 92% exam pass rate ➕ Follow me for accounting & finance insights

If you’re just delving into the fun and exciting world of finance and accounting, then you may be pretty new to the CMA certification. What is the CMA certification? It’s a certification, with an exam you’ll need to take and pass, that will qualify you to become a “certified management accountant” — a highly specialized certification associated with strategic and managerial roles. More so, you may be wondering what a CMA review course is since one is needed to earn your certificate. Click here to read all about it: https://lnkd.in/eC9JubhH #cmaexam #cmacoach

Top 5 Liquidity KPIs Got Cash? Liquidity ratios assess a company's short-term financial health: 1️⃣ Current Ratio: This measures the ability of a company to pay short-term liabilities with short-term assets. Formula: Current Assets / Current Liabilities Example: Let's say XYZ Corp has current assets of $1,200,000 and current liabilities of $800,000. The current ratio is 1.5 ($1,200,000/$800,000), indicating XYZ Corp has $1.5 of current assets for each $1 of current liabilities. 2️⃣ Quick (Acid-Test) Ratio: This ratio is a stricter measure of liquidity, as it excludes inventories from current assets. Formula: (Current Assets - Inventories) / Current Liabilities Example: If XYZ Corp's inventories amount to $200,000, the quick ratio is 1.25 [($1,200,000-$200,000)/$800,000]. This means they have $1.25 of liquid assets for each $1 of current liabilities. 3️⃣ Cash Ratio: This is the most conservative liquidity ratio, considering only cash and cash equivalents against current liabilities. Formula: Cash & Cash Equivalents / Current Liabilities Example: Assuming XYZ Corp has $300,000 in cash & equivalents, their cash ratio is 0.375 ($300,000/$800,000), implying they have $0.375 in cash for every $1 of current liabilities. 4️⃣ Cash Flow Ratio: This assesses the ability of a company's operating cash flow to meet its current liabilities. Formula: Operating Cash Flow / Current Liabilities Example: If XYZ Corp's operating cash flow is $500,000, the cash flow ratio is 0.625 ($500,000/$800,000), suggesting XYZ Corp can cover $0.625 of current liabilities with each dollar of cash flow. 5️⃣ Net Working Capital Ratio: This ratio provides the net current assets (or working capital) relative to total assets. Formula: (Current Assets - Current Liabilities) / Total Assets Example: Assume XYZ Corp has total assets of $5,000,000. The net working capital ratio is 0.08 [($1,200,000-$800,000)/$5,000,000], indicating working capital is 8% of the total assets. Should be used in conjunction with other financial metrics for a more comprehensive analysis —--------------- 👉 Want to know more? This is one of many topics tested on the CMA exam Accelerate your knowledge by earning your CMA! 🌟 82,000+ accountants got my free CMA exam cheat sheet. Get yours too! (link in bio) —--------------- Hi! I’m Nathan Liao, Founder & CEO of: 🚀 CMA Exam Academy dot com - Pass the CMA exam on your first attempt! - 16-week Accelerator program (link in bio) - Students in 120 countries. 92% exam pass rate ➕ Follow me for accounting & finance insights

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How To Ask Your Boss To Sponsor Your CMA Certification👇 Employers understand the value of the CMA Many are willing to sponsor it But the key is to approach them well-prepared Here’s your 10-step checklist: 1. Research & Document the Benefits: Highlight how the CMA will make you a bigger asset. Show stats on how CMAs have improved efficiency, financial strategy, and growth in similar organizations. Check IMA’s annual salary survey for more info. 2. Present a Clear Budget: Outline the total cost – exam fees, prep materials, courses, and potential retest fees. A well-laid-out budget shows initiative. 3. Draft a Training & Study Schedule: Show your dedication. When will you study? How will you manage work and prep without conflicts? 4. Immediate Application of Knowledge: Emphasize that while the certification is a long-term investment, the skills and knowledge you acquire during the prep phase can be immediately applied to your current role, bringing about instantaneous improvements and efficiency. 5. Offer to "Pay Back" Through Commitment: Consider proposing a tenure commitment post-certification, assuring them of a return on investment through your enhanced skills. 6. Discuss Potential Tax Deductions: Some educational expenses can be tax-deductible for businesses. Check local regulations and remind your employer about this. 7. Be Ready to Address Concerns: What if you don't pass? Have a plan. Consider offering to cover retesting fees or suggesting a repayment plan if the certification isn't achieved within a timeframe. 8. Stay Open to Partial Sponsorship: Full sponsorship is ideal, but partial support can also significantly ease your financial burden. 9. Professional Development Plan: Show them the bigger picture. How does the CMA fit into your 5-year career plan within the company? 10. Schedule a Formal Meeting: Don’t spring this during a coffee break. Schedule a time, be ready with your materials, and make it official. —--------------- The key is to show a high ROI Not just for yourself, but for the organization too! By doing so, they’re more likely to back you up 🤝 —------------------- Hi! I’m Nathan Liao, Founder & CEO of: 🚀 CMA Exam Academy dot com - Pass the CMA exam on your first attempt! - 16-week Accelerator program (link in bio) - Students in 120 countries. 92% exam pass rate 🚀 CPE Flow dot com - Are you a certified accountant? - Earn your annual CPE credits (link in bio) ➕ Follow me for accounting & finance insights

Turn Financial Data Into Insights In 10 simple steps 👇 1️⃣ Set Clear Goals: Establish what you want to achieve - be it increasing revenue, reducing expenses, or improving cash flow. Example: Your company aims to increase revenue by 10% this fiscal year. 2️⃣ Identify Key Metrics: Determine the crucial financial indicators that align with your goals. Example: Gross profit margin and sales growth rate are crucial for your revenue goal. 3️⃣ Collect and Cleanse Data: Gather financial data and ensure its accuracy and relevance. Example: Compile sales and cost data from your accounting software and ensure it's up-to-date and accurate. 4️⃣ Analyze the Data: Use financial analysis techniques like ratio analysis, trend analysis, and more to decode the numbers. Example: Use ratio analysis to calculate your current gross profit margin and compare it to the industry average. 5️⃣ Decipher Patterns: Identify patterns and trends in your financial data to understand what's working and what isn’t. Example: Spot a pattern of declining sales in a particular product line affecting your overall revenue. 6️⃣ Implement Predictive Analytics: Leverage predictive analytics to forecast future performance based on historical data. Example: Use past sales data and trend analysis to forecast future sales for different product lines. 7️⃣ Convert Insights into Actions: Transform your analysis into specific actions aimed at achieving your goals. Example: Develop a strategy to boost sales in underperforming product lines, such as marketing campaigns or pricing adjustments. 8️⃣ Visualize the Data: Use dashboards and infographics to present data in a digestible way for non-finance executives. Example: Use a dashboard to illustrate how changes in the sales of each product line impact overall revenue. 9️⃣ Communicate Effectively: Clearly articulate your findings to your executive team, ensuring they understand the implications. Example: Present your analysis and action plan in a clear, concise manner to your team, explaining how improved sales can increase overall revenue. 🔟 Monitor Performance: Continuously track performance against the identified key metrics and adjust strategies as necessary. Example: Regularly review sales figures and the gross profit margin to assess the effectiveness of your strategies and adjust as needed. —-------------- What other steps would you add? Let me know in the comments 👇 Like, Share and Comment so this post can reach more people who want to learn about how to turn financial data into insights. —--------------- Hi! I’m Nathan Liao, Founder & CEO of: 🚀 CMA Exam Academy dot com - Pass the CMA exam on your first attempt! - 16-week Accelerator program (link in bio) - Students in 120 countries. 92% exam pass rate ➕ Follow me for accounting & finance insights

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