Part 2 of the management accounting syllabus trades journal entries for judgment. The questions stop asking what a number is and start asking what it implies — whether a project earns its cost of capital, whether a movement in a ratio is a strength or a warning, whether a decision changes cash flow at all. Gleim CMA Review, Part 2, 16th Edition drills that shift, and candidates arriving from a reporting background often find it the harder half of the two.
Why this review set helps
A decision question has a right answer for one specific reason, and the reason is usually a distinction the wording hides: relevant against sunk, marginal against average, before tax against after tax. Each item here is followed by an explanation naming that distinction and showing why the tempting alternative fails it. Practising with the reasoning attached is what stops a familiar-looking question from being answered on instinct and then quietly missed.
What’s inside
- Practice questions organized by study unit rather than mixed together.
- A written explanation under every question, naming the distinction the item turns on.
- Computational items with the discounting and working shown step by step.
- Coverage of the ethics and risk units, which are examinable and easy to leave until too late.
- One organized PDF, downloadable as soon as checkout completes.
Topics covered
- Financial statement analysis — liquidity, activity, leverage and profitability measures and the limits of each.
- Corporate finance — cost of capital, capital structure, dividend policy and long-term financing choices.
- Working capital management — cash, receivable and inventory policy and sources of short-term funding.
- Capital budgeting — relevant cash flows, net present value, internal rate of return and payback.
- Decision analysis — relevant costing, make or buy, special orders, pricing and constrained resources.
- Risk management — identifying exposures, hedging instruments and enterprise risk frameworks.
- Investment decisions — valuation, the relationship between risk and return, and taxation in project analysis.
- Professional ethics — the standards of conduct and the process for resolving an ethical conflict.
Who it’s for
Candidates working through Part 2 of the management accounting certification, and finance or managerial accounting students who want practice on analysis and decision material with the reasoning attached.
How to use it (the right way)
Attempt a study unit closed-book and roughly timed, then review every explanation, not only the ones you missed. Where a question turned on a distinction rather than a calculation, write that distinction down in your own words before moving on. This is a study aid, to be used in line with your program’s academic-integrity policy, as preparation for your own study rather than a substitute for it.
Sample question (shows the format — your download contains the full set)
Q. A machine costing $42,000 is expected to generate $12,000 of net cash inflow each year for five years, with no salvage value. The required return is 10 percent, and the present value of an ordinary annuity for five years at 10 percent is 3.791. What is the net present value?
- A. $3,492
- B. $18,000
- C. $45,492
- D. negative $3,492
Answer: A. Discount the inflows first: $12,000 times 3.791 is $45,492, and deducting the $42,000 outlay leaves $3,492. Because that is positive, the project earns more than the 10 percent required return. B is total undiscounted inflow less cost and ignores the time value of money, which is the entire point of the technique. C stops one step early at the present value of the inflows, and D subtracts in the wrong direction.
Edition & format
- Matches: Gleim CMA Review, Part 2, 16th Edition — the financial decision making half of the syllabus.
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime — re-download from your account whenever you need it.
Review editions are updated as the certification content areas change. Please confirm the edition above matches the syllabus you are studying before you buy.
Frequently asked questions
Which part and edition is this? Part 2, sixteenth edition. Part 1 material on planning, performance and control is listed separately.
How is it delivered? By instant download at the end of checkout, with the file also kept in your account for repeat access.
Do the questions include explanations? Yes. Each item is followed by written reasoning naming the principle behind the answer and why each alternative fails.
Is using a review question set allowed? It is an ordinary revision resource. Use it in line with your program’s academic-integrity policy and never take it into an assessment.
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