CMA Foundation Syllabus

The Institute of Cost Accountants of India (ICMAI) publishes the CMA Foundation Syllabus 2023 on its official website, icmai.in. Before beginning their study, candidates who have registered for the exam should consult the official curriculum. The CMA Foundation syllabus 2022 has been published by ICMAI and will be used starting in the June 2023 term. The CMA Foundation exam will be administered using the 2016 syllabus until December 2023. Candidates who want to switch from the old to the new syllabus must pay a conversion fee of Rs. 250. The CMA Foundation 2023 syllabus includes information about the papers covered, subjects, and subtopics covered. According to the exam schedule, the CMA Foundation exam is offered twice a year by ICMAI: once in June and once in December.

Paper 1 –  FUNDAMENTALS OF BUSINESS LAWS AND BUSINESS COMMUNICATION (FBLC)

SECTION A: FUNDAMENTALS OF BUSINESS LAWS

1. Introduction

1.1 Sources of Law

1.2 Legislative Process in India

1.3 Legal Methods and Court System in India

1.4 Primary and Subordinate Legislation

2. Indian Contracts Act, 1872

2.1 Essential Elements of a Contract, Offer and Acceptance

2.2 Void and Voidable Agreements, No Consideration No Contract

2.3 Consideration, Legality of Object and Consideration

2.4 Capacity of Parties, Free Consent

2.5 Contingent Contracts

2.6 Performance of Contracts

2.7 Meaning of Indemnity, Guarantee, Pledge, Agent

2.8 E-Contracts and E-Signature – Meanings and Requirements

2.9 Discharge of Contracts

2.10 Breach of Contract and Remedies for Breach of Contract

3. Sale of Goods Act, 1930

3.1. Definition

3.2. Transfer of Ownership

3.3. Essential Conditions of a Contract of Sale

3.4. Conditions and Warranties

3.5. Performance of the Contract of Sale

3.6. Rights of Unpaid Seller

4. Negotiable Instruments Act, 1881

4.1. Characteristics of Negotiable Instruments

4.2. Definitions of Promissory Note, Bill of Exchange and Cheque

4.3. Difference between Promissory Note, Bill of Exchange and Cheque

4.4. Crossing – Meaning, Definition and Types of Crossing

4.5. Dishonour of Cheques (Section 138)

SECTION B: BUSINESS COMMUNICATION

5. Business Communication

5.1 Introduction to Business Communication

5.2 Features of Effective Business Communication

5.3 Process of Communication

5.4 Types of Business Communication

5.4.1 Formal and Informal Communication

5.4.2 Written, Verbal and Non-verbal Communication

5.4.3 Vertical, Horizontal and Diagonal Communication

5.4.4 Upward and Downward Communication

5.5 Internet-based Business Communication

5.6 Do’s and Don’ts of Communication through Social Media

5.7 Writing and Drafting for Business Audiences

5.7.1 Letter and Memorandum

5.7.2 Report – Formal and Informal

5.7.3 Business Proposal

5.7.4 Enhancement of Writing Skills

5.8 Intercultural and International Business Communication

5.9 Barriers to Business Communication

5.10 Legal Aspects of Business Communication

5.11 Use of Graphics and References for Business Communication

Paper 2 – FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (FFCA)

SECTION A: FUNDAMENTALS OF FINANCIAL ACCOUNTING

1. Accounting Fundamentals

1.1 Understanding of Four Frameworks of Accounting (Conceptual, Legal, Institutional and Regulatory) and Forms of Organization

1.2 Accounting Principles, Concepts and Conventions

1.3 Capital and Revenue Transactions – Capital and Revenue Expenditures, Capital and Revenue Receipts

1.4 Accounting Cycle – Charts of Accounts and Codification Structure, Analysis of Transaction – Accounting Equation, Double Entry System, Books of Original Entry, Subsidiary Books and Finalisation of Accounts

1.5 Journal (Day Books; Journal Proper – Opening, Transfer, Closing, Adjustment and Rectification Entries), Ledger

1.6 Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement

1.7 Trial Balance

1.8 Adjustment Entries and Rectification of Errors

1.9 Depreciation (Straight Line and Diminishing Balance Methods only)

1.10 Accounting Treatment of Bad Debts and Provision for Doubtful Debts

2. Accounting for Special Transactions

2.1 Consignment

2.2 Joint Venture

2.3 Bills of Exchange (excluding Accommodation Bill, Insolvency)

3. Preparation of Final Accounts

3.1 Preparation of Financial Statements of Sole Proprietorship

3.1.1 Income Statement, Balance Sheet

3.2 Preparation of Financial Statements of a Not-for-Profit Organisation

3.2.1 Preparation of Receipts and Payments Account

3.2.2 Preparation of Income and Expenditure Account

3.2.3 Preparation of Balance Sheet

SECTION B: FUNDAMENTALS OF COST ACCOUNTING

4. Fundamentals of Cost Accounting

4.1 Meaning, Definition, Significance of Cost Accounting, its Relationship with Financial Accounting

4.2 Application of Cost Accounting for Business Decisions

4.3 Definition of Cost, Cost Centre, Cost Unit and Cost Drivers

4.4 Classification of Costs (with reference to Cost Accounting Standard 1)

4.5 Ascertainment of Cost and Preparation of Statement of Cost and Profit (Cost Sheet)

 

Paper 3 – FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS (FBMS)

SECTION A: FUNDAMENTALS OF BUSINESS MATHEMATICS

1. Arithmetic

1.1 Ratios, Variations and Proportions

1.2 Time Value of Money and Annuity – Simple and Compound Interest

1.3 Arithmetic Progression and Geometric Progression

1.4 Time and Distance

2. Algebra

2.1 Set Theory, including Venn Diagram

2.2 Indices and Logarithms (Basic Concepts)

2.3 Permutation and Combinations (Basic Concepts)

2.4 Quadratic Equations (Basic Concepts)

3. Calculus – Application in Business

3.1 Concept of Calculus and its Application in Business

3.2 Revenue and Cost Function

3.3 Optimisation Techniques (Basic Concepts)

SECTION B: FUNDAMENTALS OF BUSINESS STATISTICS

4. Statistical Representation of Data

4.1 Diagrammatic Representation of Data

4.2 Frequency Distribution

4.3 Graphical Representation of Frequency Distribution – Histogram, Frequency Polygon Curve, Ogive, Pie-chart

5. Measures of Central Tendency and Dispersion

 5.1 Mean, Median, Mode, Mean Deviation

5.2 Range, Quartiles and Quartile Deviation

5.3 Standard Deviation

5.4 Co-efficient of Variation

5.5 Karl Pearson and Bowley’s Co-efficient of Skewness

6. Correlation and Regression

6.1 Scatter Diagram

6.2 Karl Pearson’s Co-efficient of Correlation

6.3 Regression Analysis

7. Probability

7.1 Concepts and Terminologies

7.2 Primary applications of Probability Theorems

8. Index Numbers and Time Series

8.1 Uses of Index Numbers, Methods of Construction of Index Number

8.2 Components of Time Series and Calculation of Trend by Moving Average Method

 

Paper 4 – FUNDAMENTALS OF BUSINESS ECONOMICS AND MANAGEMENT (FBEM)

SECTION A: FUNDAMENTALS OF BUSINESS ECONOMICS

1. Basic Concepts

1.1 The Fundamentals of Economics

1.2 Utility, Wealth, Production

1.3 Theory of Demand (Meaning, Determinants of Demand, Law of Demand, Elasticity of Demand – Price, Income and Cross Elasticity, Theory of Consumer Behaviour, Demand Forecasting) and Supply (Meaning, Determinants, Law of Supply and Elasticity of Supply), Equilibrium

1.4 Theory of Production (Meaning, Factors, Laws of Production – Law of Variable Proportion, Laws of Returns to Scale)

1.5 Cost of Production (Concept of Costs, Short-run and Long-run Costs, Average and Marginal Costs, Total, Fixed and Variable Costs)

1.6 Means of Production

2. Forms of Market

2.1 Pricing of Products and Services in Various Forms of Markets – Perfect Competition, Duopoly, Oligopoly, Monopoly, Monopolistic Competition

2.2 Price Discrimination

3. Money and Banking

4. Economic and Business Environment

4.1 PESTEL (Political, Economic, Societal, Technological and Legal) Analysis

4.2 Emerging Dimensions of VUCAFU (Volatility, Uncertainty, Complexity, Ambiguity, Fear of Unknown and Unprecedentedness)

SECTION B – FUNDAMENTALS OF MANAGEMENT

5. Fundamentals of Management

5.1 Introduction to Management

5.2 Stewardship Theory and Agency Theory of Management

5.3 Planning, Organizing, Staffing and Leading

5.4 Communication, Co-ordination, Collaboration, Monitoring and Control

5.5 Organisation Structure, Responsibility, Accountability and Delegation of Authority

5.6 Leadership and Motivation – Concepts and Theories

5.7 Decision-making – Types and Process