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Certified Management Accountant (CMA), Part 1

Certified Management Accountant (CMA), Part 1
Other name: Certified Management Accountant (CMA), Part 1
Muhammad Zain
 Business Textbooks Books


CMA Part 1 – Financial Reporting, Planning, Performance and Control – 2019

1. 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.

2. 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.

3. 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.

4. What is the proprietary theory?

Proprietary theory is way that the balance sheet presents the assets,
liabilities, and equity, showing that the net assets belong to the owners of the company.

5. What is equity?

The remaining balance of assets after the subtraction of all liabilities. This is the amount of the company’s assets that are owned by and owed to the owners.

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