CMA Foundation Course Syllabus

ICMAI Foundation Syllabus 2020 for June 2020 attempt. 

Here in this article, you will be provided with the complete updated syllabus for the June 2020 attempt. Use this syllabus to start your preparation ASAP so that you can qualify the exam with the desired marks and the desired rank. Study with us to fulfill your dream of qualifying the exam in the very first attempt.

Subjects in the CMA Foundation course:

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

“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.

“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

“PAPER 3: FUNDAMENTALS OF LAWS AND ETHICS (FLE)” 

SECTION A: FUNDAMENTALS OF COMMERCIAL & INDUSTRIAL 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]

. 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 (FBMS)”

SECTION A: FUNDAMENTALS OF BUSINESS MATHEMATICS [40 MARKS]

. 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