CMA is one of the most respected job in our country with a good annual package also, This article is for all those students who have cleared their CMA Foundation. In this article, you will find all the important topics that are necessary for you to learn and qualify your exam with high ranks.

 

CMA Inter Important Topics, Questions, Chapters

FINANCIAL ACCOUNTING

Accounting Standards

• AS-1: Disclosure of Accounting Policies
• AS-2: Valuation of Inventories
• AS-5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
• AS-10: Accounting for Fixed Assets

Bank Reconciliation Statements

Depreciation Accounting (AS – 6)

Impairment of Assets (AS -28)

Preparation of Financial statements

• Preparation of Receipts and Payments Account
• Preparation of Income and Expenditure Account
• Balance Sheet
• Concept of single entry system, conversion of single entry system into a double-entry system of accounting

Partnership

• Admission, Retirement, Death, Treatment of Joint Life Policy
• piecemeal distribution
• The amalgamation of the partnership firm

Self-Balancing Ledger

Insurance Claim ( Loss of Stock and Loss of profit)

Accounts of a Banking Company

Accounts of Insurance Companies (as per the Insurance Act) including Stock Valuation.

LAWS, ETHICS, AND GOVERNANCE

Section A: LAWS (Industrial and Economic Laws) [60 marks]

Laws of Contracts

• Essential elements of a contract, offer and acceptance
• Quasi-contracts, contingent contracts, termination or discharge of contracts
• Special contracts: Indemnity and Guarantee; Bailment and Pledge; Laws of Agency

Laws relating to Sale of Goods

• Transfer of ownership
• Performance of the contract of sale

Laws relating to Employees

Here you have to prepare object, scope and applicability of the every following Acts for ICWA Inter. Just know about basic concept of every Act .

• Factories Act,1948
• Industrial Disputes Act,1947
• Workmen’s Compensation Act,1923
• Payment of Wages Act, 1936 and Minimum Wages Act,1948
• Payment of Bonus Act, 1965 and Payment of Gratuity Act, 1972
• Employees State Insurance (E.S.I)Act, 1950
• Provident Fund (P.F.) Act, 1952
• The Child Employee (Prohibition and Regulation) Act, 1986

Negotiable Instruments Act, 1881

• Definition, Acceptance, and negotiation
• Dishonor of a Negotiable Instrument

Laws related to Partnership

• Nature of Partnership
• Rights and liabilities of Partners
• Dissolution of Firms
• Limited Liability Partnership Act, 2008

Prevention of Money Laundering Act ,2011

• Prevention of Money Laundering Act, 2011
• Obligations of Banks and Financial Institutions

Section B: Corporate Laws and Governance [20 marks]

Essentials of Corporate Laws

• Company – types, formation and related procedures
• Director- roles, responsibilities, qualification, disqualification, appointment/re-appointment, retirement, resignation, removal, remuneration, powers, duties, Director’s Identification Number (DIN), Loans to Directors, Office or Place of Profit
• Cost Accountant – Appointment, Role and Responsibilities – with special reference to Certification

Right to Information Act, 2005

• Salient features, objective
• Request for obtaining information

Governance

• Basic understanding of Corporate Governance
• Corporate governance practices in India, USA, UK, Japan and Germany
• Internal Audit for Governance – nature, scope, function, planning process, investigation of fraud, internal audit reports
• Statutory Audit for Governance

Section C : Ethics [20 marks]

• Ethics – meaning, importance, nature and relevance to business, values and attitudes of Professional Accountants
• The “Seven Principles of Public Life” – selflessness
• The relationship between ethics and law, the difference between ethical codes and contracts
• Unethical behavior – consequences

DIRECT TAXATION

SECTION A: INCOME TAX [65 MARKS]

Income Tax Act, 1961

• Basic Concepts and definitions
• Residential Status and Incidence of Tax

Heads of Income and Computation of Total Income under various heads

• Income from salaries
• Capital gains
• Income from other sources

Tax Planning and Tax Management

• Concept and application
• For setting up new business units
• Tax incentives and Export Promotion Schemes,  exemptions
• Computation of income and Return of Income Tax, Filing procedure, e-filing
• Penalties, Fines and Prosecution

SECTION B: WEALTH TAX [10 MARKS]

Wealth Tax Act, 1957

• concept and charge of wealth tax
• exempted assets
• Valuation of assets
• Return of Wealth Tax and assessment procedure

SECTION – C – INTERNATIONAL TAXATION [25 MARKS]

• Residency issues, source of income
• double taxation avoidance agreements
• Reference to Cost Accounting Records and Cost Audit Reports.
• General Anti-Avoidance Rules (GAAR) – concept and application

 COST ACCOUNTING  AND FINANCIAL MANAGEMENT

SECTION A: COST ACCOUNTING – PRIME COSTS & OVERHEADS [60 MARKS]

• Materials
• Employee Costs
• Overhead

SECTION B : FINANCIAL MANAGEMENT [40 MARKS]

• Hire Purchase, Forfeiting, Bill Discounting, Factoring, Asset Securitization
• Concepts of Value and Return – Time preference for money, Future Value, Present Value, Net Present Value (NPV)
• Funds flow and Cashflow Analysis
• Analysis Financial Ratio and Cash Flow
• Cash and Marketable securities
• Financing of working capital
• Operating Risk and Financial Risk and Combined Leverages
• Operating leverages and Cost-Volume-Profit (CVP) analysis, Earning Before Interest and Tax (EBIT), Earning Per Share (EPS), Indifference point
• Weighted Average Cost of Capital and Marginal Cost of Capital
• payback period method, accounting rate of return, net present value, internal rate of return, modified internal rate of return, discounted payback period and profitability index.

Theory

• Financial Management – meaning, objectives, scope, related finance disciplines, planning environment, key-decision areas
• Financial Decision – Making – Emerging role of finance managers
• Time preference for money, Future Value, Present Value, Net Present Value (NPV)
• Operating leverages and Cost-Volume-Profit (CVP) analysis, Earning Before Interest and Tax (EBIT), Earning Per Share (EPS), Indifference point
• Meaning, components, methods of determination of cost of capital related to debt, preference shares, equity shares, retained earnings, depreciation fund

OPERATION MANAGEMENT & INFORMATION SYSTEM

Section A: Operations Management [60 marks]

• Operations Management – introduction, scope, need, challenges, role in decision-making
• Process strategy , process analysis and design, production process flow, cost flow, costing system
• Economics and optimization – basics, Pareto Optimality condition, price-mechanism and optimum resource allocation,
• Studies at the workplace – Time study, Work-study, Method study, Activity sampling, Work simplification, Job Evaluation
• Project Life Cycle, scheduling with Gantt Charts, PERT and CPM, Project Risk measurement
• Human Resource Planning and optimization – introduction, job allocation/assignment
• Introduction, features, measurement techniques of factors of production, productivity index, productivity of Employee, productivity of materials, productivity of management resources
• Methods of improving productivity including quality circles
• Total Quality Management (TQM) – basics tools and certification
• Spare parts – Planning, policy and control
• Application of Queuing theory in maintenance and spares management

Section B: Information System [40 marks]

• Structured Systems Analysis and Design, Physical and Logical Data Inflow Diagrams
• DataBase Concept, Overview of DBMS, Data Models, Database Administrator, Database User, Schema, Data Independence
• Definition, scope, planned and unplanned MIS, MIS information time scale, transaction processing
• MIS and Levels of Management – operational level, tactical level, strategic level
• Business Intelligence – Architecture Analysis
• Processing Management of Accounting Information
• MIS in functional areas: Finance & Cost Management, Inventory, Marketing, HRM, Financial modeling
• Enterprise Resource Planning (ERP)
• Cyber laws

COST AND MANAGEMENT ACCOUNTANCY

Section A: Cost & Management Accounting – Methods & Techniques (50 marks)

• Necessity and importance of cost accounting
• Reconciliation between cost and Financial profit and loss account; Integrated and non-integrated accounting and reporting
• contract costing, process costing
• work-in-progress and abnormal loss accounts
• Marginal Costing
• Integration of Standard Costing with Marginal Cost Accounting
• Absorption Cost Accounting and Throughput Accounting
• Accounting and control of waste, scrap, spoilage, defective, etc
• Budget Concepts and Budget Preparation
• Fixed, variable, semi-variable and activity-based categorizations of cost and their application in projecting financial results
• accounting – methods and reconciliation – stock valuation
• interpretation and uses for Managerial decision-making activities

Section B: Cost Records and Cost Audit (20 marks)

• Cost Audit under Companies Act, 1956
• Nature and scope of Cost Audit
• Cost Accounting Record Rules, 2011 and Cost Audit Report Rules,2011

Section C: Economics for Managerial Decision-making (30 marks)

• Concepts of Markets, analysis of market demand and empirical estimation of demand
• Government Intervention and effect
• cost analysis
• Factor demand and input decisions
• Pricing Policies

INDIRECT TAXATION

• Features of Indirect Tax, Constitutional Validity
• The Central Excise Law – Goods, Excisable Goods, Manufacture and manufacturer, Classification, Valuation, Related Person, Captive Consumption, CAS 4 CENVAT, Basic Procedure, Export, SSI, Job Work
• Central Excise Audit and Special Audit under 14A and 14AA of Central Excise Act
• Impact of tax on GATT 94, WTO, Anti Dumping processing
• Types of customs duties, Anti-Dumping Duty, Safeguard Duty
• Valuation, Customs Procedures, Import and Export Procedures
• Service Tax ( Full Chapter )
• Introduction, Definitions, salient features of CST Act
• Procedures under Central Sales Tax (CST)
• Introduction, definitions, salient features of Sate VAT Act
• Filing of return under State VAT Act
• Accounting & Auditing VAT
• International Taxation & Transfer Pricing issues in the context of Indirect Taxation
• General Anti-Avoidance Rule (GAAR) – concept and application

COMPANY ACCOUNTS & AUDIT

Section A: Generally Accepted Accounting Principles (GAAP) (20 marks)

Accounting Standards ( All Standards are Imp. )

• AS 11: The Effects of Changes in Foreign Exchange Rates (Revised 2003)
• AS 12: Accounting for Government Grants
• AS 15: Employee Benefits
• AS 19: Leases
• AS 20: Earning Per Share
• AS 26: Intangible Assets
• AS 29: Provisions, Contingent Liabilities and Contingent Assets

Section B: Accounts of Joint Stock Companies (40 marks)

• Issue of Equity shares
• Forfeiture of Shares, Reissue of Forfeited Shares
• Buy Back of Equity Shares
• Under writing of Shares and Debentures
• Part I – Form of Balance Sheet
• Part II – Form of Statement of Profit and Loss
• Cash Flow Statement (AS 3)
• Accounting for Amalgamation [AS -14]
• Internal Reconstruction
• Accounting involved in liquidation of companies

 Section C – Auditing (40 marks)

• Nature, scope and significance of Audit
• Internal Check, Internal Control
• Auditor’s qualification, disqualification, appointment, remuneration, removal, power and duties
• Reporting requirements under companies act
• Audit of shares and debentures
• Audit of Government Companies

Note: The topics listed above are meant to be given higher importance during exam preparation and we no way mean that other topics can be skipped.

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Also Read:

CMA Inter Syllabus Dec 2019- Subjects & Changes Details

CMA Inter Reference Books – Best Suggested Books

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