cma foundation

CMA Foundation Syllabus  

Paper – 1 Fundamentals of Economics and Management
Paper – 2 Fundamentals of Accounting
Paper – 3 Fundamentals of Laws and Ethics
Paper – 4 Fundamentals of Business Mathematics & Statistics

cma foundation syllabus

PAPER – 1: FUNDAMENTALS OF ECONOMICS AND MANAGEMENT


CONTENTS                                                                Weightage


Section A : Fundamentals of Economics
1. Basic concepts of Economics                                   20%
2. Forms of Market                                                       20%
3. Money and Banking                                                 10%
Section B : Fundamentals of Management
4. Management Process                                              50%

Section A : Fundamentals of Economics
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
 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
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 – Concept & Theories
(d) Decision-making – types of decisions, decision-making process
PAPER – 2: FUNDAMENTALS OF ACCOUNTING

CONTENTS                                                             Weightage

Section A : Fundamentals of Financial Accounting
1. Accounting Fundamentals                                        35%
2. Accounting for Special Transactions                        20%
3. Preparation of Final Accounts                                  25%
Section B: Fundamentals of Cost Accounting
4. Fundamentals of Cost Accounting                           20%

Section A : Fundamentals of Financial Accounting [80 Marks]
1. Accounting Basics
(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

Online Quiz 


PAPER – 3: FUNDAMENTALS OF LAWS AND ETHICS

CONTENTS                                                       Weightage

Section A : Fundamentals of Commercial Laws
1. Indian Contracts Act, 1872                                 40%
2. Sale of Goods Act, 1930                                    20%
3. Negotiable Instruments Act, 1881                     10%
Section B : Fundamentals of Ethics
4. Ethics and Business                                          30%

Section A : Fundamentals of Commercial and Industrial Laws 
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) Differences between Promissory Note, Bill of exchange and Cheque
(d) Crossing – Meaning, Definition and Types of Crossing.
Section B : Fundamentals of Ethics
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
PAPER – 4 : FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS

CONTENTS                                                                   Weightage

 Section A : Fundamentals of Business Mathematics
1. Arithmetic                                                                     20%
2. Algebra                                                                        20%
Section B : Fundamentals of Business Statistics
3. Statistical representation of Data                                  10%
4. Measures of Central Tendency and Dispersion            30%
5. Correlation and Regression                                         10%
6. Probability                                                                    10%

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