CMA FOUNDATION

CMA FOUNDATION IS FIRST STEP FOR ENTRANCE IN CMA COURSE AFTER (10+2) AS PER ICAI INSTITUTE OF COST ACCOUNTANT OF INDIA.

CMA Foundation Syllabus 2020: The Institute of Cost Accountants of India (ICAI) has issued the syllabus of CMA foundation exam 2020. The candidates preparing for the exam of CMA foundation must refer the syllabus issued by the institute. As the exam question paper will be prepared as per the syllabus issued by ICAI for CMA foundation level exam 2020. The CMA foundation is the first level of the CMA course conducted by ICAI. So, there are some subjects which are based on the syllabus of senior secondary level examinations.

Foundation Course:
PAPER 1: FUNDAMENTALS OF ECONOMICS AND MANAGEMENT (FEM)
PAPER 2: FUNDAMENTALS OF ACCOUNTING (FOA)
PAPER 3: FUNDAMENTALS OF LAWS AND ETHICS (FLE)
PAPER 4: FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS (FBMS)
The candidates pursuing CMA can refer this article for complete information regarding the syllabus of CMA foundation 2020.

1. Basic concepts of Economics20%
2. Forms of Market20%
3. Money and Banking10%
4. Management Process50%
PAPER 1: FUNDAMENTALS OF ECONOMICS AND MANAGEMENT (FEM)


SECTION A: FUNDAMENTALS OF ECONOMICS [50 MARKS]
1. Basic Concepts of Economics – Micro & Macro Economics
(a) The Fundamentals of Economics
(b) Utility, Wealth, Production
(c) Theory of Demand (meaning, determinants of demand, law of demand, elasticity of demand-price, income and cross elasticity) and Supply (meaning, determinants, law of supply and elasticity of supply)
(d) Equilibrium
(e) Theory of Production (meaning, factors, laws of production-law of variable proportion, laws of returns to scale) (f) Cost of Production (concept of costs, short-run and long-run costs, average and marginal costs, total, fixed and variable costs)
2. Forms of Market
(a) Pricing strategies in various forms of markets
3. Money and Banking
(a) Definition of Money, Types, Features and Functions
(b) Definition, functions, utility, principles of Banking
(c) Commercial Banks, Central Bank
(d) Measures of credit control and Money Market
SECTION B – FUNDAMENTALS OF MANAGEMENT [50 MARKS]
4. Management Process
(a) Introduction, planning, organizing, staffing, leading control, communication, co-ordination
(b) Concept of Power, Authority, Delegation of Authority, Responsibility, Accountability
(c) Leadership & Motivation – Concepts & Theories
(d) Decision-making – types of decisions, decision- making process

1. Accounting Fundamentals35%
2. Accounting for Special Transactions20%
3. Preparation of Final Accounts25%
4. Fundamentals of Cost Accounting20%

PAPER 2: FUNDAMENTALS OF ACCOUNTING (FOA)

SECTION A : FUNDAMENTALS OF FINANCIAL ACCOUNTING [80 MARKS]
1. Accounting Fundamentals
(a) Accounting Principles, Concepts and Conventions
(b) Capital and Revenue transactions- capital and revenue expenditures, capital and revenue receipts
(c) Double entry system, Books of prime entry, Subsidiary Books, Cash Book
(d) Journal , Ledger, Trial Balance
(e) Depreciation – Methods (Straight Line and Diminishing Balance methods only)
(f) Rectification of Errors
(g) Opening entries, Transfer entries, Adjustment entries, Closing entries
(h) Bank Reconciliation Statements
2. Accounting for Special Transactions
(a) Bills of Exchange (excluding accommodation bill, insolvency)
(b) Consignment (cost price, invoice price, commission & valuation of stock)
(c) Joint Venture
3. Preparation of Final Accounts:
(a) Of a Profit making concern (for sole proprietorship concern only)
(i) Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount on debtors and provision for discount on creditors.
(ii) Preparation of Trading Account, Profit & Loss Account and Balance Sheet.
(b) Of a Not-for- Profit making concern
(i) Preparation of Receipts and Payments Account
(ii) Preparation of Income and Expenditure Account
SECTION B: FUNDAMENTALS OF COST ACCOUNTING [20 MARKS]
4. Fundamentals of Cost Accounting
(a) Meaning, Definition, Significance of Cost Accounting, its relationship with Financial Accounting & Management Accounting.
(b) Classification of Costs
(c) Format of Cost Sheet

1. Indian Contracts Act, 187240%
2. Sale of Goods Act, 193020%
3. Negotiable Instruments Act,188110%
4. Ethics and Business30%

PAPER 3: FUNDAMENTALS OF LAWS AND ETHICS (FLE

SECTION A: FUNDAMENTALS OF COMMERCIAL LAWS [70 MARKS]
1. Indian Contracts Act, 1872
(a) Essential elements of a contract, offer and acceptance
(b) Void and voidable agreements
(c) Consideration, legality of object and consideration
(d) Capacity of Parties, free consent
(e) Quasi-contracts, Contingent contracts
(f) Performance of contracts
(g) Discharge of contracts
(h) Breach of Contract and Remedies for Breach of Contract

2. Sale of Goods Act, 1930
(a) Definition
(b) Transfer of ownership
(c) Conditions and Warranties
(d) Performance of the Contract of Sale
(e) Rights of Unpaid Vendor
(f) Auction Sales

3. Negotiable Instruments Act, 1881
(a) Negotiable Instruments–Characteristics of Negotiable Instruments
(b) Definitions of Promissory Note, Bill of Exchange and Cheque
(c) Difference between Promissory Note, Bill of Exchange and Cheque
(d) Crossing – Meaning, Definition and Types of Crossing.

SECTION B: FUNDAMENTALS OF ETHICS [30 MARKS]
4. Ethics and Business
(a) Ethics – Meaning, Importance
(b) The “Seven Principles of Public Life” – Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty and Leadership
(c) The relationship between Ethics and Law
(d) Ethics in Business

1. Arithmetic20%
2. Algebra20%
3. Statistical representation of Data10%
4. Measures of Central Tendency and Dispersion30%
5. Correlation and Regression10%
6. Probability10%

PAPER 4: FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS (FBMS)

SECTION A: FUNDAMENTALS OF BUSINESS MATHEMATICS [40 MARKS]
1. Arithmetic
(a) Ratios, Variations and Proportions
(b) Simple and Compound Interest
(c) Arithmetic Progression and Geometric Progression

2. Algebra
(a) Set Theory
(b) Indices and Logarithms (basic concepts)
(c) Permutation and Combinations (basic concepts)
(d) Quadratic Equations (basic concepts)

SECTION B: FUNDAMENTALS OF BUSINESS STATISTICS [60 MARKS]
3. Statistical Representation of Data
(a) Diagrammatic representation of data
(b) Frequency distribution
(c) Graphical representation of Frequency Distribution – Histogram, Frequency Polygon Curve, Ogive, Pie-chart

4. Measures of Central Tendency and Dispersion
(a) Mean, Median, Mode, Mean Deviation
(b) Range, Quartiles and Quartile Deviation
(c) Standard Deviation
(d) Co-efficient of Variation
(e) Karl Pearson and Bowley’s Co-efficient of Skewness

5. Correlation and Regression
(a) Scatter diagram
(b) Karl Pearson’s Coefficient of Correlation
(c) Regression lines, Regression equations, Regression coefficients

6. Probability
(a) Independent and dependent events; Mutually exclusive events
(b) Total and Compound Probability; Baye’s theorem; Mathematical Expectation

For Admission in CMA Foundation please visit https://icmai.in/studentswebsite/

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