Soriao, Kurt Francis E.

BSAC 3-1

Significant Learnings
 Management Accountants are flexible in working with different industries.
 Aside from the fact that they help businesses manage their finances, they are also
business leaders, innovators, decision makers, and forecasters.
 CMAs are practiced to perform professional duties in accordance with technical
standards.
 CMAs also continually develop knowledge, skills, and competency in the field of
businesses.
 CMAs are also built to exercise confidentiality, integrity, credibility, and being resilient
to conflicts.
 Management Accountants are the ones that analyze data, forecasts and budgets in helping
leaders make sound decisions.
 Management Accountants are also more on internal reports.
 They are also very responsive to business needs.
 They are able to utilize financial and non-financial data in pursuing highest level success.
Definition of Terms
 Accounting - The process of identifying, classifying, measuring, recording and
communicating in monetary terms transactions and events of an economic entity that are
of a financial character.
 Principles of CMA - Honesty, Fairness, Objectivity, and Responsibility are the
overarching ethical values of CMA Philippines. All CMAs are expected to act in
accordance with these principles and to encourage others in their organizations to do so
as well.
 Standards – These are rules set in order for CMAs to practice discipline and exercise
good work ethics.
 Competence – The ability of a CMA to maintain an appropriate level of professional
expertise by continuously developing knowledge and skills.
 Confidentiality – The responsibility of a CMA to keep information confidential except
when disclosure is authorized or legally required, to inform all relevant parties regarding
appropriate use of confidential information, and to refrain from using confidential
information for unethical or illegal advantage.
 Integrity – Refers to the refrainment from engaging in any conduct that would prejudice
carrying out duties ethically.
 Credibility – The responsibility of a CMA to communicate information fairly and
objectively.
 CMA Philippines - An examining body in cooperation with Institute of Certified
Management Accountants (ICMA) of Australia, wherein candidates have to attend the
graduate level education program, pass the CMA® examinations, and comply with the
experience requirements in order to earn the Certified Management Accountant (CMA®)
designation.
 Audit - The systematic study of accounting records through analyses, confirmation, and
tests to ensure that the records accurately reflect economic condition and operations.
 Budget Process - An organization's procedure for preparing a plan for a future time,
allocating resources, determining revenues and expenditures, and compiling reports
related to that plan.
 Business Plan - A document written by a company's management that details the
company's past, present, and future. It serves as the foundation for preparing budgets for
specific business units.
 Cash Management - The processes an entity uses to collect, disburse, and invest its
cash.
 CMA – Certified Management Accountant; accountants that analyze budgets for internal
review and help companies make informed, strategic business decisions.
 Collateral - An asset that is promised to a lender as a guarantee until a loan is repaid.
The lender has the right to sell the collateral asset if the borrower defaults.
 Comparability - The level of detail in data that allows users to spot parallels and
contrasts between two sets of economic occurrences.
 Comprehensive Income - All changes in equity during a time, except those coming from
owner investments and payouts.
 Consistency - Consistency with unchanged policies and practices from one time to the
next.
 Contribution Margin - The excess of sales revenues over variable costs.
 Financial Statement Analysis - focuses on the mechanics of financial statement analysis,
including balance sheet and income statement analysis, ratio analysis, cash flow analysis,
common size analysis, and trend analysis. Particular emphasis is placed on quality of
earnings analysis.
 Financial modeling - Is the process of creating an abstract representation of a real-world
financial situation called a financial model. It is a mathematical model used to represent a
simplified version of the performance of a financial asset or portfolio of a company,
project, or other investment.
 Financial Management - The strategic planning, organizing, directing, and managing of
financial endeavors in an organization. It also entails applying management principles to
an organization's financial assets, as well as playing a significant role in fiscal
management.