CMA Part 1 - Financial Reporting, Planning, Performance and Control - 2019
It is my great honor to present you the 2nd edition of Certified Management Accountant (CMA) – Part 1 – Financial Reporting, Planning, Performance, and Control Study Notes.
These Study Notes are are universally accessible to all. You are permitted to use these notes and distribute them to the other candidates as well.
I have tried to keep the materials simple, clear and concise. I welcome feedback from the potential readers. These materials are relevant till 31 December 2019.
Muhammad Zain has passed Uniform Certified Public Accountant (CPA) exams from American Institute of Certified Public Accountants (AICPA), US in February 2018, Certified Management Accountant (CMA) exams from Institute of Management Accountants (IMA), US and Certified Internal Auditor (CIA) exams from Institute of Internal Auditors (IIA), US in March 2014. He has completed his Masters of Business Administration (MBA) in March 2010 from University of Karachi, Pakistan. He earned his Bachelors of Commerce (BCOM) from the same University in November 2007.
He has working experience of more than 10 years which includes five years of Public Accounting experience of working in EY Ford Rhodes, Pakistan – a member firm of Ernst & Young Global Limited (big4) and more than 5 years of working experience in Industry in managerial capacity.
Who are direct users of financial statements?
Direct users are directly affected by a company’s financial results and stand to lose money if the company has financial problems. Direct users include investors and potential investors, employees, management, suppliers, and creditors.
Who are indirect users of financial statements?
Indirect users are people or groups who represent direct users. Indirect users include financial analysts and advisors, stock markets, and regulatory bodies.
What are the five financial statements?
1) Balance Sheet (also called the Statement of Financial Position) 2) Income Statement
3) Statement of Cash Flows
4) Statement of Comprehensive Income
5) Statement of Changes in Stockholders’ Equity
What does the balance sheet show?
The balance sheet provides information about an entity’s assets, liabilities, and owners’ equity at a point in time.
What are the elements of the balance sheet?
3) Equity (or net assets)