Can You Use Excel On The CMA Exam?

There is not a spreadsheet type tool in the test. Only a basic calculator.

Can you use Excel on the CMA exam?

There is not a spreadsheet type tool in the test. Only a basic calculator.

How many ratios are there in ratio analysis?

Ratio analysis consists of calculating financial performance using five basic types of ratios: profitability, liquidity, activity, debt, and market.

What are the 4 ratios in accounting?

If we explain types of Accounting Ratios in detail then there are four types of Accounting Ratios:

  • Liquidity Ratio.
  • Solvency Ratio.
  • Profitability Ratio.
  • Activity Ratio.

What is the most important financial ratio?

Return on equity ratio

This is one of the most important financial ratios for calculating profit, looking at a company's net earnings minus dividends and dividing this figure by shareholders equity. The result tells you about a company's overall profitability, and can also be referred to as return on net worth.

How do you study financial ratios?


  1. Uses and Users of Financial Ratio Analysis.
  2. Current ratio = Current assets / Current liabilities.
  3. Acid-test ratio = Current assets – Inventories / Current liabilities.
  4. Cash ratio = Cash and Cash equivalents / Current Liabilities.
  5. Operating cash flow ratio = Operating cash flow / Current liabilities.

What does a current ratio of 1.2 mean?

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn't have enough liquid assets to cover its short-term liabilities.

What do accounting ratios tell you?

Accounting ratios, an important sub-set of financial ratios, are a group of metrics used to measure the efficiency and profitability of a company based on its financial reports. They provide a way of expressing the relationship between one accounting data point to another and are the basis of ratio analysis.

What are the 5 accounting ratios?

Five of the key financial ratios are the price-to-earnings ratio, PEG ratio, price-to-sales ratio, price-to-book ratio, and debt-to-equity ratio.

What is accounting ratio 12?

1. Ratio It is an arithmetical expression of relationship between two related or interdependent items. 2. Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements.

What is a good quick ratio?

A good quick ratio is any number greater than 1.0. If your business has a quick ratio of 1.0 or greater, that typically means your business is healthy and can pay its liabilities.

What is 12th ratio analysis?

Ratio Analysis : It is a technique of analysis of financial statements to conduct a quantitative analysis of information in a company's financial statements. “Ratio analysis is a study of relationship among various financial factors in a business.” – Myers.

Is CMA difficult to pass?

The CMA exam is very difficult and it will test your intellectual limits. The industry average CMA pass rate for both sections is only 45%, meaning less than half of the people taking the test will pass. The CMA exam is notorious for its rigor and difficulty, and if you want to pass, you need to prepare.

Which is tougher CPA or CMA?

You can expect, roughly speaking, a 30-40% overlap. If you have taken the CPA exam, you will know that the CMA exam Part 1 could be considered as a harder and a more comprehensive version of BEC and that Part 2 has similarities with Level 1 of CFA).

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