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🇮🇳 CMA Foundation · subject
CMA Foundation Fundamentals of Accounting Syllabus
Every chapter and topic of Fundamentals of Accounting examined in CMA Foundation — 8 chapters, 21 topics, plus 52 flashcards written against it.
Fundamentals of Accounting syllabus — full chapter and topic list
Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Fundamentals of Accounting in CMA Foundation, not a summary of it.
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Accounting Basics
3 topics- Introduction to Accounting
- Accounting Principles and Concepts
- Accounting Standards
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Journal and Ledger
3 topics- Journal Entries
- Ledger Posting
- Trial Balance
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Subsidiary Books
3 topics- Cash Book
- Purchase and Sales Book
- Journal Proper
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Bank Reconciliation Statement
2 topics- Purpose and Preparation of BRS
- Causes of Differences
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Depreciation Accounting
2 topics- Concept and Methods of Depreciation
- Accounting Treatment of Depreciation
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Preparation of Final Accounts
3 topics- Trading and Profit & Loss Account
- Balance Sheet
- Adjustments in Final Accounts
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Rectification of Errors
2 topics- Types of Errors
- Rectification Entries
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Accounting for Non-Profit Organizations
3 topics- Receipts and Payments Account
- Income and Expenditure Account
- Balance Sheet
Fundamentals of Accounting flashcards for CMA Foundation
25 of 52 cards from the Fundamentals of Accounting deck — real questions with worked answers.
What is accounting?
The process of identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial transactions and events of a business to interested users.
State the three golden rules of accounting under the traditional (British) approach.
Personal A/c: Debit the receiver, credit the giver. Real A/c: Debit what comes in, credit what goes out. Nominal A/c: Debit all expenses and losses, credit all incomes and gains.
What is the accounting equation?
Assets = Liabilities + Capital (Owner's Equity).
Differentiate between bookkeeping and accounting.
Bookkeeping is the routine recording and classifying of transactions (clerical). Accounting is broader — it summarizes, analyzes, interprets and communicates results, and includes bookkeeping as its first stage.
What is the money measurement concept?
Only transactions and events that can be expressed in monetary terms are recorded in the books of account; non-monetary facts (e.g., staff morale) are ignored.
Explain the going concern concept.
It assumes the business will continue to operate for the foreseeable future and has no intention or need to liquidate, so assets are recorded at cost and depreciated over useful life rather than at break-up value.
Explain the business entity (separate entity) concept.
The business is treated as a unit distinct from its owners; the owner's personal transactions are kept separate, and capital introduced is a liability of the business to the owner.
State the dual aspect concept.
Every transaction has two aspects — a debit and an equal credit — keeping the accounting equation in balance; this is the basis of the double-entry system.
What is the matching concept?
Expenses incurred to earn revenue in an accounting period must be matched against the revenue of that same period to determine correct profit or loss.
What does the conservatism (prudence) concept require?
Anticipate no profits but provide for all possible losses — record all probable losses and liabilities, but recognize revenue only when reasonably certain (e.g., stock valued at cost or NRV, whichever is lower).
What is the accrual concept?
Revenues and expenses are recognized when they are earned or incurred, not when cash is received or paid.
What are accounting standards?
Written policy documents issued by a recognized authority (e.g., ICAI/ICMAI) prescribing principles, methods and disclosures for recognition, measurement and presentation of accounting transactions to ensure uniformity and comparability.
Which body issues Accounting Standards in India, and what governs companies now?
The Institute of Chartered Accountants of India (ICAI) through its ASB issues Accounting Standards; companies follow notified AS or Ind AS under the Companies Act, 2013.
What is the main objective of accounting standards?
To bring uniformity, consistency and comparability in financial statements, reduce variations in accounting treatments, and improve the reliability of financial information.
What is a journal and what is the process of recording in it called?
The journal is the book of original entry where transactions are first recorded in chronological order; the process is called journalising.
What is a compound journal entry?
A single journal entry that involves more than two accounts — either more than one debit or more than one credit (or both) — recorded together because they relate to the same transaction.
What is a narration in a journal entry?
A brief explanation of the transaction written in brackets below each journal entry, describing the nature and purpose of the entry.
What is a ledger?
The principal book of accounts (book of final entry) that contains all individual accounts where transactions from the journal are classified and posted to show the net effect on each account.
What is posting?
The process of transferring entries from the journal (or subsidiary books) to the respective accounts in the ledger.
How is the balance of a ledger account determined?
Total the debit and credit sides; the difference is the balance — a debit balance (carried down on the credit side as 'By Balance c/d') or credit balance — entered to make both sides equal.
What is a trial balance?
A statement listing the debit and credit balances of all ledger accounts on a particular date, prepared to check the arithmetical accuracy of the books (total debits should equal total credits).
Does a tallied trial balance guarantee that no errors exist?
No. It only confirms arithmetical accuracy; errors of omission, principle, commission (in correct sides), and compensating errors do not affect agreement.
Name three methods of preparing a trial balance.
Totals method, Balances method, and the Totals-cum-Balances method.
What is a cash book?
A subsidiary book that records all cash receipts and cash payments; it serves a dual role as both a journal and a ledger account for cash (and bank).
What is a contra entry in a cash book?
An entry that affects both cash and bank columns of a double/three-column cash book (e.g., cash deposited into bank or cash withdrawn from bank), marked with 'C' in the ledger folio; no separate posting is needed.
Planning Fundamentals of Accounting for CMA Foundation
Fundamentals of Accounting is about 22% of the CMA Foundation syllabus by topic count — 21 of 96 topics, spread over 8 chapters. At roughly 45 minutes per topic plus 12 minutes per sub-topic, a first pass runs to about 15 hours.
The heaviest chapters are Accounting Basics (3 topics), Journal and Ledger (3 topics), Subsidiary Books (3 topics) . Front-load those while your energy is high; the short chapters are better revision filler later.
Work top-down: read the chapter, then tick topics off individually rather than marking the whole chapter done. Sub-topics are where silent gaps hide.
Fundamentals of Accounting (CMA Foundation) FAQ
What is in the CMA Foundation Fundamentals of Accounting syllabus?
Fundamentals of Accounting is split into 8 chapters — Accounting Basics, Journal and Ledger, Subsidiary Books, Bank Reconciliation Statement, Depreciation Accounting and Preparation of Final Accounts, and 2 more, containing 21 topics and 0 sub-topics in total.
How is Fundamentals of Accounting structured in the CMA Foundation syllabus?
8 chapters. Fundamentals of Accounting accounts for about 22% of the topics in the whole CMA Foundation syllabus (21 of 96).
How long should I spend on Fundamentals of Accounting for CMA Foundation?
Budget around 15 hours for a first pass through Fundamentals of Accounting — about 45 minutes per topic plus 12 minutes per sub-topic across its 21 topics. Add revision cycles on top.
Are there flashcards for CMA Foundation Fundamentals of Accounting?
Yes — a 52-card Fundamentals of Accounting deck. Sample cards are printed on this page, and the full deck is free in the Examius app with spaced repetition scheduling.