CMA updates
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 […]
Preparation of Financial Statements from Incomplete Records Question 1.Write short note on the following:Weaknesses of Single Entry System (June 2017, 5 marks)Answer:Weaknesses of single entry system: As principle of double entry is not followed, the trial balance cannot be prepared. As such, arithmetical accuracy cannot be guaranteed. Profit or loss can be found out only […]
Preparation of Financial Statements of Not-for-Profit Organisations Question 1.Write short note on the following:Features of Income and Expenditure Account (June 2019, 5 marks)Answer:Features of Income and Expenditure Account: It follows Nominal Account. All expenses of revenue nature for the particular period are debited to this Account on accrual basis. Similarly, all revenue incomes related to […]
Preparation of Financial Statements of Commercial Organisations Question 1.Write short note on the following:Provision for Discount on Debtors (June 2019, 5 marks)Answer:Provision for Discount on Debtors:We know that cash discount is allowed by the suppliers to customers for prompt settlement of cash. Naturally a provision is created for this purpose. Thus, the provision which […]
Bills of Exchange CMA Inter Financial Accounting Question 1.Write short flotes on the following:(a) Accommodation Bill (June 2016, 5 marks)(c) Rebate on Bills Discounted (June 2016, 5 marks)Answer:(a) Accommodation Bill: An Accommodation Bill is a bill of exchange signed by-a party as drawer, drawee, endorser to accommodate another party whose credit is not strong enough […]
Accounting Fundamentals – CMA Inter Financial Accounting Question 1.Write short note:(c) Accounting convention of consistency; (Dec 2012, 5 marks)Answer:In order to enable the management to draw important conclusions regarding the working of a company over a number of years it is essential that accounting practices and methods remain unchanged from one accounting period to another. […]