How to effectively Prepare for CA Inter Financial Management & Economic For

Start from the basic theory and formulas of the chapters so that you can easily solve the questions. Try to understand the making of formulas so that they will remain in your mind for a longer period.

You can start from the Cash Flow and Fund Flow, the most important topic. You will definitely find a question either from the Cash Flow or the Fund Flow.

Then take a short chapter to build confidence i.e. Leverage, a formulae-based chapter but if your concepts are clear, you understood the formulas rather than learning it then it is the simplest and short chapter.

Then you can go with Capital Budgeting and thoroughly prepare the sums on the Payback period, PI, ARR, NPV, and IRR. Every method is important but among all the topics NPV and IRR are quite more important so prepare them very well.

Again pick a short chapter Ratios, a formula-based chapter so, read and understand the formulas first and then start solving questions.

Then you can complete Cost of Capital, Leasing, Management of Working Capital, and Capital structure.

Prepare the theory well with the practical part.

Cover each topic in Economics for Finance

Weightage and No. of Revision

More scoring part

Capital Budgeting and Payback period, PI, ARR, NPV, and IRR. Every method is important but among all the topics NPV and IRR is quite more important so prepare them very well

Topics covered in Economics for Finance are as follows-

1. Determination of National Income
2. Public Finance
3. The Money Market
4. International Trade

Cover every topic all topics under eco is most important

Past trending Questions

Mostly Questions ask about Capital budgeting, leverage, cost of capital, Payback period, PI, ARR, NPV, and IRR.

Cash Flow and Fund Flow, the most important topic. You will definitely find a question either from the Cash Flow or the Fund Flow in every attempt.

Also, Check For- CA Foundation Important Questions for Nov 2021 ICAI Exams

Which questions to attempt first

Attempt the easiest question first which you think you are MOST CONFIDENT about. When the paper checker starts checking your paper you surely wish to start with good impressions. That initial positive effect helps because the paper checker may award you half a mark extra in the latter half of your paper. Your 6 months hangs on that may of the paper checker.

Always prefer to do theoretical at the beginning. In theory, we have only two options:

1. Either you know the answer or
2. You dont know the answer to the mind is clear

But if we talk about the numerical part we would not be sure that where we are going to be stuck while attempting the question. The reason for getting stuck up can be an error in calculation, comprehension problem in a line of question, lack of confidence in applying a concept, etc. Being an ex-examiner, I can assure you that, in general, every exam step marking is done in both theories as well as numerical and it does not hamper your impression if you attempt theory first.

One more thing, in several CA final exam papers theory and numerical are in the blended form. What I mean to say is

Anyone who is preparing for Chartered Accountant must be well familiar with these subjects. It has been noticed that lots of things depend on the CA student that how they spend their sped exam. Apart from all this, it has also been noticed that the preparation for CA inter FM-Eco is also dependent on the way they start studying the subject. Keep one thing in mind that you can build up your confidence if you have prepared well for the financial management and Economics subjects for your upcoming CA Inter exams. Moreover, it has also been noticed that if you are scoring well in the Financial Management subject, then you can change the scenario of the game in your intermediate examination. So, if you want to prepare well in this subject, then the first thing which you need to do is get well acquainted with the syllabus. In addition, along with the hours of disciplined effort, you also need smart planning for the CA Inter FM-Eco.

Now the only thing which you need to do is build up a smart as well as robust strategy to clear your exam. But before this, you must know that why there is a need to prepare for FM-Eco strategically. Recently ICAI has revised the syllabus for CA intermediate with some minor as well as major changes across subjects. And the biggest change is the increase of one paper from seven to eight in the CA inter syllabus. The eighth paper is financial management and economics for finance.

 Previously the exam was conducted based on 700 total marks, but now it changed to 800. Well, let me inform you that the FM-Eco constitutes a total of 100 marks, among which FM, which is financial management, has 60 percent of weight. And Eco, which is economics for finance, has 40 percent weight, which constitutes 40 marks. Follow the below points so that you can start preparing strategically.

• Now at the time of starting your preparation, you need to start with the basic theory and formulae present inside the chapter. The main motive behind doing this is that it will help you to gain confidence, and at the same time, it will also encourage you to move forward with higher momentum.  
• The next thing which you need to do is segregate the chapter of a subject based on their difficulty level so that you can easily start preparing for the easy chapter first.
• The most important thing which you need to do is take notes in parallel at the time of solving sums. This will help you to summarize all the crucial steps in one particular place. Moreover, in the end, you will find that this will serve your purpose as a ready reckoner at the time of revising.

Apart from the points discussed above, the best thing which you can do is opt for the Ca Inter Mock Test Papers. This will be very much helpful before the exam in getting the real-time scenario of the exam questions. Moreover, the test series will also help get familiar with the type of question that you are going to face at the time of the real CA inter examination.

A topic that is covered under Eco

Several topics are covered under Eco, or you can say the economics for finance. They are:

1. Public Finance
2. International trade
3. Money market
4. Determination of National Income

Tips for students appearing for CA Inter FM-Eco

If you want to prepare well and score good marks, then there are certain points which you have to follow. Mentioned below are those points.

• Never indulge in selective studying – The golden rule of scoring higher in your intermediate CA exam is to never opt for selective studying. It has been seen that most of the students leave a topic due to its vastness. But this should not be done as the particular topic of the syllabus can have some good weightage of marks.

• Every chapter has some subtopics – It is advisable to make a list of all sub-topics which is present in the chapter of Economics subject. As soon as you list out the sub-topic, then the next things which you need to do are cover questions that are completely based on those subtopics.

• Speed – Speed has been regarded as one of the important factors in getting success for the final exams. The reason behind it is that the question paper is quite lengthy, and it tests the swiftness of the person opting for the intermediate exam. The best thing which you can do to deal with speed is to solve multiple Inter mock test series. This is going to help you in getting your speed to get better.

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