CA Foundation is contemplated as the new entrance level for the Chartered Accountancy course in our country. It was previously known by the name of Common Proficiency Test (CPT). CPT was the foremost level of Chartered Accountancy examinations in India. Its name was altered to CA Foundation in agreement with ICAI revised scheme. Any student having completed 10th grade can register for CPT and take the exam after completing 12th grade. Commerce graduates are also eligible to take the exam of CPT. CPT was basically an objective type examination and consisted of 200 multiple choice questions. It comprised four primary subjects divided into two sections.
The changed CA Foundation entrance allows candidates to register for it after taking the 12th board exams and then appear the CA Foundation exam after qualifying the 12th grade examinations. Hence, it is mandatory for a candidate to be a 12th passout for appearing the CA Foundation entrance level. CA Foundation is a partly subjective and a partly objective test consisting of four papers. The four papers are Principles and Practices of Accounting, Business Laws and Business Correspondence and Reporting, Business Mathematics and Logical Reasoning and Statistics, Business Economics and Business and Commercial Knowledge. The first two papers are subjective and the next two papers are objective. Each paper is of 100 marks, hence the entrance being of 400 marks.
Accounting is the measurement, processing and sharing of financial and non-financial information among economic entities such as businesses and corporations. Practitioners of accounting are referred to as accountants. Accounting is popularly known as the language of business. It calculates the outcomes of an organization's economic activities and conveys this information to a wide variety of users, such as investors, creditors, management and regulators. Business law is otherwise referred to as corporate law or enterprise law. It is the body of law which governs the rights, relations, conduct of people, companies, organizations and businesses. Business law usually describes the law concerning matters which derive directly from the life cycle of a corporation.
Business correspondence refers to the exchange of information in a written format for carrying out business activities. Written communication helps in maintaining a proper relationship, while also serving as an evidence. Mathematics put into use by commercial enterprises to record and manage business operations is called business mathematics. There are three kinds of logical reasoning, namely, deductive reasoning, inductive reasoning and abductive reasoning. Statistics is a branch of mathematics dealing with data collection, organization, analysis, interpretation and presentation. Business economics is a sector in applied economics which puts into effect economic theory and quantitative methods to analyse business enterprises.
A candidate who wishes to take up the CA Foundation entrance exam has to compulsorily register for CA Foundation course by filling up the online registration form available on the ICAI website. Admit cards are made available by the ICAI 21 days before exam. Registration to CA Foundation course will expire after three years. Exams are usually held in the month of May and November. AVJ Knowledge Academy provides group tuitions for CA Foundation entrance exam.