CMA Full Form is Credit Monitoring Analysis. Credit Monitoring Analysis (CMD) is a critical analysis done by a credit analyst or banker to check the credibility of a company that has applied for a loan. It includes an in-depth analysis of the loan applicant’s current and projected financial statements. This analysis shows the creditworthiness of the company which shows the ability of a company to repay debt. This is a very important function of the finance department of the organization that provides loans.
Banks check the CMA report of the company before sanctioning the loan and the loan cannot be sanctioned if the report is not satisfactory. Banks consider various factors for CMA such as analysis of the company’s current business, credit history, current assets and liabilities, balance sheet and current and projected financial statements.
CMA Exams
CMA exams are divided into two parts (four hours for each part) the syllabus of which is as below:
Syllabus for CMA Exam Part 1
- External Financial Reporting Decisions
- Planning, Budgeting and Forecasting
- Performance Management
- Cost Management
- Internal Controls
Syllabus for CMA Exam Part 2
- Financial Statement Analysis
- Corporate Finance
- Decision Analysis
- Risk Management
- Investment Decisions
- Professional Ethics
The candidates have to clear both these parts within 3 years of registering for CMA.
sir plz writing tips ds doo ji