CMA Foundation Syllabus 2021 - Subject Wise Syllabus, Topic Weightage

Paper Number

Subjects

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

Section A: Fundamentals of Economics (50%)

1. Basic concepts of Economics

• The Fundamentals of Economics

• Utility, Wealth, Production

• Theory of Demand (determinants of demand, the law of demand, the elasticity of demand-price, income and cross elasticity) and Supply (determinants, the law of supply and elasticity of supply)

• Equilibrium

• Theory of Production (factors, laws of production-law of variable proportion, laws of returns to scale)

• Cost of Production (the concept of costs, short-run and long-run costs, average and

marginal costs, total, fixed and variable costs)

20%

2. Forms of Market

• Pricing strategies in various forms of markets

20%

3. Money and Banking

• Definition of Money, Types, Features and Functions

• Definition, functions, utility, principles of Banking

• Commercial Banks, Central Bank

• Measures of credit control and Money Market

10%

Section B: Fundamentals of Management (50%)

4. Management Process

• Introduction, planning, organizing, staffing, leading control, communication, coordination

• Concept of power, authority, a delegation of authority, responsibility, accountability

• Leadership & Motivation

• Decision-making – types of decisions, decision- making process.

50%

Section A: Fundamentals of Financial Accounting (80%)

1. Accounting Fundamentals

• Accounting Principles, Concepts and Conventions

• Capital and Revenue transactions

• The double-entry system, prime entry books, subsidiary books, cash Book etc

• Journal, Ledger, Trial Balance

• Depreciation

• Rectification of Errors

• Opening entries, Transfer entries, Adjustment entries, Closing entries

• Bank Reconciliation Statements

35%

2. Accounting for Special Transactions

• Bills of Exchange (excluding accommodation bill, insolvency)

• Consignment

• Joint Venture

20%

3. Preparation of Final Accounts

• Profit-making concern

• Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount on debtors, provision for discount on creditors.

• Preparation of trading account, profit & loss account, balance sheet.

• Not-for-Profit making concern

• Preparation of Receipts and payment account

• Preparation of Income and Expenditure Account

25%

Section B: Fundamentals of Cost Accounting (20%)

4. Fundamentals of Cost Accounting

• Cost Accounting, its relationship with Financial

Accounting & Management Accounting.

• Classification of Costs

• Format of Cost Sheet

20%

Section A: Fundamentals of Commercial Laws (70%)

1. Indian Contracts Act, 1872

• Essential elements of a contract, offer and acceptance

• Void and voidable agreements

• Consideration, the legality of object and consideration

• The capacity of Parties, free consent

• Quasi-contracts, Contingent contracts

• Performance of contracts

• Discharge of contracts

• Breach of Contract and its Remedies

40%

2. Sale of Goods Act, 1930

• Definition

• Transfer of ownership

• Conditions and Warranties

• Performance of the Contract of Sale

• Rights of Unpaid Vendor

• Auction Sales

20%

3. Negotiable Instruments Act,1881

• Negotiable Instruments–Characteristics of Negotiable Instruments

• Definitions of Promissory Note, Bill of Exchange and Cheque

• Difference between promissory Note, bill of exchange and cheque

• Crossing – Meaning, Definition and Types of Crossing.

10%

Section B: Fundamentals of Ethics (30%)

4. Ethics and Business

• Ethics

• The “Seven Principles of Public Life”

• The relationship between Ethics and Law

• Ethics in Business

30%

Section A: Fundamentals of Business Mathematics (40%)

1. Arithmetic

• Ratios, Variations and Proportions

• Simple and Compound Interest

• Arithmetic Progression and Geometric Progression

2. Algebra

• Set Theory

• Indices and Logarithms

• Permutation and Combinations

• Quadratic Equations

Section B: Fundamentals of Business Statistics (60%)

3. Statistical representation of Data

• Diagrammatic representation of data

• Frequency distribution

• Graphical representation of frequency distribution

• Polygon Curve, Ogive, Pie-chart

10%

4. Measures of Central Tendency and

Dispersion

• Mean, Median, Mode, Mean Deviation

• Range, Quartiles and Quartile Deviation

• Standard Deviation

• Coefficient of Variation

• Karl Pearson and Bowley’s Coefficient of Skewness

30%

5. Correlation and Regression

• Scatter diagram

• Karl Pearson’s Coefficient of Correlation

• Regression lines, Regression equations, Regression coefficients

10%

6. Probability

• Independent and dependent events; Mutually exclusive events

• Total and Compound Probability; Bayes theorem; Mathematical Expectation

10%

Type of questions

Objective cum descriptive

Exam duration

3 hours

Total marks

100 marks per paper

Number of papers

4

Medium of exam

English

Marking scheme

No negative marking

Paper name

Download link

Paper 1: Fundamentals of Economics and Management

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Paper 2: Fundamentals of Accounting

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Paper 3: Fundamentals of Commercial Laws & Ethics

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Paper 4: Fundamentals of Business Mathematics and Statistics

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