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How to Prepare for CA Inter Financial Management and Economics for Finance: Subject-Wise Tips

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Cracking the CA examination is no walk in the park- many CA aspirants sweating it out will tell you that with certainty. However, it is also not an impossible task, provided you adopt certain tricks and methodologies to conquer the challenge. If you are preparing for CA Inter Financial Management and Economics for Finance, this article is just for you! Along with hours of disciplined effort, smart planning is essential to be able to ace the CA Inter Financial Management and Economics for Finance paper and these essential tips to study CA Inter Financial management can help you build a smart and robust strategy for clearing the exam.

prepare for CA Inter Financial Management and Economics for Finance

ICAI has recently brought about multiple changes in the syllabus and the examination format. The paper of Financial Management & Economics in the CA intermediate examination is a new subject introduced into the ICAI ambit. Given below are some tips which will help you prepare better for the financial management and economics paper in the CA intermediate examination.

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What you will read next?

  1. Old vs New Syllabus of CA Intermediate Financial Management and Economics
  2. How to prepare for CA Intermediate Financial Management and Economics – 8 Quick Tips
  3. Online resources to study CA Intermediate Financial Management and Economics

Old vs New Syllabus of CA Intermediate Financial Management and Economics

ICAI has revised the syllabus for CA intermediate with some minor and some major changes across subjects. However, the biggest change is the addition of a new subject in the CA Inter syllabus. In the old syllabus, there were 7 papers, which has now been revised to 8- the eighth paper being Financial Management and Economics for finance. The examination was earlier conducted out of 700 marks, which is now changed to 800.

  • Cost accounting and financial management constituted one paper under Group I. In the new syllabus, Cost Accounting is a separate Group I paper with 100 marks
  • Group 2 includes the subject of financial management and economics for finance for a total of 100 marks.
     Financial Management – 60 marks
     Economics for Finance- 40 marks
  • Focus has shifted from knowledge-based testing towards application and analysis-oriented questions
  • Economics for Finance is a new subject introduced into the ICAI curriculum- short and easy to learn, the topics for this subject are explained well in the study material and is a high-scorer for CA aspirants
  • Topics covered in the Economics for Finance section are:
  • I. Public Finance
  • II. Money Market
  • III. International Trade
  • IV. Determination of National Income

I. Public Finance
II. Money Market
III. International Trade
IV. Determination of National Income

How to prepare for CA Intermediate Financial Management and Economics – 8 Quick tips

Financial Management and Economics for finance has two sections, Financial Management, with weightage of 60 marks and Economics for finance with weightage of 40 marks

  1. Begin with basic theory and formulae in each chapter. This will help you gain confidence and encourage you to move forward with higher momentum
  2. Classify the subject into easy and difficult chapters so that you can start preparing easy chapters first. For example, Leverage is one such topic which is easy to master and it is highly
    recommended to begin with this topic
  3. Cash Flow and Fund Flow is a time-consuming chapter but is a high-priority topic. If you are well-versed with this chapter, it could prove to be quite scoring indeed
  4. Vast topics like budgeting require more attention. We recommend practicing sums and problems immediately after reading the theory for higher retention. Moreover, keep revising it
    even when you are studying other chapters
  5. While studying Capital Budgeting, thoroughly prepare the sums on Payback period, PI, ARR, NPV and IRR. Pay special attention to NPV and IRR as they are the most used out methods in the
    industry out of all the methods
  6. Taking notes in parallel while solving sums will help summarize all important steps and formulae in one place. This becomes a ready-reckoner for you while revising
  7. Practicing ratios can be fun if you keep revising the associated formulae every 2-3 days. Create a formulae guide for yourself in your own handwriting
  8. Practicing past papers and RTPs will help you gain pace in problem-solving and boost confidence

Online resources to prepare for CA Intermediate Financial Management and Economics

  • Learn about the complete syllabus of the subject given on the ICAI website
  • Mock Test Paper Series I – Questions, Mock test Paper Series I – Answers
  • Mock Test Paper Series II – Questions, Mock Test Paper Series II – Answers
  • Be a step ahead in your preparation with access to past question papers and solutions by SuperProfs here
  • Understand more about the subject with videos from experts in the field of Financial Management in the CA intermediate examination
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The whole aspect of new introductions and uncertainty need not throw you off your preparation. Understanding the basics and derivations of the formulae, linking explained concepts to real-world business scenarios and practicing your way to perfection are the key to your success when you study for Financial Management and Economics paper in the CA intermediate examination.

You can watch a few demo lectures by SuperProfs for CA and see if you would want to consider subscribing to our video series for a better shot at clearing the CA CPT examination.

Click Here for your FREE Trial

Also Read:

CA final Preparation strategy -A month before exam: Revision Guide

How to prepare for CA Foundation: Quick Tips to Clear CA Foundation


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