CMA Foundation New Syllabus 2016
Paper 1: Fundamentals of Economics & Management
Section A : Fundamentals of Economics [50 Marks]
- 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 demandprice, 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)
CMA Foundation Study Material for Syllabus 2016CMA Foundation, CMA Inter, CMA Final New Syllabus 2016
- Forms of Market
Pricing strategies in various forms of markets
- 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 – Concept & Theories(d) Decision-making – types of decisions, decision-making process.
Paper – 2: Fundamentals of Accounting
Section A : Fundamentals of Financial Accounting [80 Marks] Accounting Basics
Accounting Principles, Concepts and ConventionsCapital and Revenue transactions – capital and revenue expenditures, capital and revenue receiptsDouble entry system, Books of prime entry, Subsidiary Books, Cash BookJournal, Ledger, Trial BalanceDepreciation – Methods (Straight Line and Diminishing Balance methods only)Rectification of ErrorsOpening entries, Transfer entries, Adjustment entries, Closing entriesBank Reconciliation Statements
Accounting for Special Transactions
Bills of Exchange (excluding accommodation bill, insolvency)Consignment (cost price, invoice price, commission & valuation of stock)Joint Venture
Preparation of Final Accounts:
Of a Profit making concern (for sole proprietorship concern only)Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount on debtors and provision for discount on creditors.Preparation of Trading Account, Profit & Loss Account and Balance Sheet.Of a Not-for- Profit making concernPreparation of Receipts and Payments AccountPreparation of Income and Expenditure Account
Section B : Fundamentals of Cost Accounting [20 Marks]
Fundamentals of Cost Accounting
Meaning, Definition, Significance of Cost Accounting, its relationship with Financial Accounting & Management Accounting.Classification of CostsFormat of Cost Sheet
Paper 3 – Fundamentals of Laws and Ethics
Section A : Fundamentals of Commercial and Industrial Laws
1 Indian Contracts Act, 1872
Essential elements of a contract, offer and acceptanceVoid and voidable agreementsConsideration, legality of object and considerationCapacity of Parties, free consentQuasi Contracts, Contingent ContractsPerformance of contractsDischarge of contractsBreach of Contract and Remedies for Breach of Contract
2 Sale of Goods Act, 1930
DefinitionTransfer of ownershipConditions and WarrantiesPerformance of the Contract of SaleRights of Unpaid VendorAuction Sales
3 Negotiable Instruments Act, 1881
Negotiable Instruments -Characteristics of Negotiable InstrumentsDefinitions of Promissory Note, Bill of Exchange and ChequeDifferences between Promissory Note, Bill of exchange and ChequeCrossing – Meaning, Definition and Types of Crossing.
Section B : Fundamentals of Ethics
Ethics and Business
Ethics – Meaning, ImportanceThe “Seven Principles of Public Life” – selflessness, integrity, objectivity, accountability, openness, honesty and leadershipThe relationship between Ethics and LawEthics in Business
Paper 4: Fundamentals of Business Mathematics & Statistics
Section A : Fundamentals of Business Mathematics [40 Marks]
Arithmetic
Ratios, Variations and ProportionsSimple and Compound interestArithmetic Progression and Geometric Progression.
Algebra
Set TheoryIndices and Logarithms (basic concepts)Permutation and Combinations (basic concepts)Quadratic Equations (basic concepts)
Section B : Fundamentals of Business Statistics [60 Marks]
Statistical Representation of Data
Diagrammatic representation of dataFrequency distributionGraphical representation of Frequency Distribution – Histogram, Frequency Polygon Curve, Ogive, Pie-chart
Measures of Central Tendency and Dispersion
Mean, Median, Mode, Mean DeviationRange, Quartiles and Quartile DeviationStandard DeviationCo-efficient of VariationKarl Pearson and Bowley’s Co-efficient of Skewness
Correlation and Regression
Scatter diagramKarl Pearson’s Coefficient of CorrelationRegression lines, Regression equations, Regression coefficients
Probability
Independent and dependent events; Mutually exclusive eventsTotal and Compound Probability; Baye’s theorem; Mathematical Expectation
