CMA updates
FINANCIAL ACCOUNTING QUESTION ANSWERS Accounting Fundamentals Bills of Exchange, Consignment, Joint Venture Preparation of Final Accounts of Commercial Organisations, Not-for-Profit Organisations and Incomplete Records Preparation of Financial Statements of Commercial Organisations Preparation of Financial Statements of Not-for-Profit Organisations Preparation of Financial Statements from Incomplete Records Partnership Accounting Lease Accounting Branch (including Foreign Branch) and Departmental […]
CMA Inter Financial Accounting MCQs Question 1.From the four alternative answers given against each of the following cases, indicate the correct answer:(i) Realisation account is opened at the time of(A) Admission of a new partner(B) Retirement of a partner(C) Dissolution of the Firm(D) In all the above situationsAnswer:(C) Dissolution of the FirmDissolution of the firm: […]
Accounting Standards Question 1.Write short note:Recognition of Govt. grants related to specific fixed assets (PPE). (June 2017, 4 marks)Answer:Recognition of Govt. grants related to specific fixed assets (PPE):Grants received specifically for fixed asset(PPE) is disclosed in the financial statement either(i) by way of deduction from the gross block of the asset concerned, thus granted recognized […]
Hire Purchase and Installment Sale Transactions Question 1.Distinction between Hire Purchase Agreement and Instalment Purchase Agreement (Dec 2018, 5 marks)Answer:Hire Purchase Agreement differs from Installment Purchase Agreement in the following respects: Basis of Distinction Hire Purchase Agreement Installment Purchase Agreement 1. Act governing It is governed by Hire Purchase Act 1972. It is governed […]
Insurance Claim for Loss of Stock and Loss of Profit Question 1.Write short note on the following:Consequential Loss Policy. (Dec 2018, 5 marks)Answer:Business enterprises get insured against the loss of stock on the happening of certain events such as fire, flood, theft, earthquake, etc. Insurance being a contract of indemnity, the claim for loss is […]
CMA Pass PercentageThe CMA pass percentage is released by ICMAI after each exam session. It is used to analyze student performance and measure the difficulty level of the papers. CMA Inter Pass PercentageThe CMA Inter pass percentage is declared by ICMAI for both Group 1 and Group 2. It helps students evaluate trends and plan better preparation strategies. CMA US […]
Departmental Accounting – CMA Inter Financial Accounting Question 1.Distinguish between Branch and Departmental Accounting. (June 2013, 2 marks)Answer:The differences between Branch and Departmental are listed below:- Departmental Branch 1. Departmental always in Inland 1. It is either Inland or Foreign. 2. All departments of a Business remain generally under one roof. 2. Branch of a […]
Branch Accounting – CMA Inter Financial Accounting Question 1.Write short note on:Classification of Branches for Branch accounting purpose. (Dec 2012, 5 marks)Answer: .Branches are classified as two-way,(i) Inland Branch,(ii) Foreign Branch (i) Inland Branches:(a) Dependent Branches: Branches in respect of which the whole of the accounting records are kept at head office.(b) Independent Branches: As […]
Lease Accounting – CMA Inter Financial Accounting Question 1. Write short note:Operating Lease and Finance Lease (Dec 2017, 4 marks)Answer:Operating Lease and Finance LeaseA lease is an agreement whereby the lessor conveys to the lessee in return for a payment or sones of payments the right to use an asset for an agreed period of […]
Partnership Accounting – CMA Inter Financial Accounting Question 1.Write short note:Guaranteed Partnership. (June 2013, 5 marks)Answer:In a partnership, there may be special agreement by virtue of which partner may get the guarantee of earning a minimum amount of profit. The guarantee may be given by one partner in particular or by the firm. It is […]