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100+ Free CMA Foundation Paper 2 (FFCA) Practice Questions

ICMAI CMA Foundation Paper 2: Fundamentals of Financial and Cost Accounting practice questions are available now; exam metadata is being verified.

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Goods costing Rs.1,00,000 are consigned at an invoice price of 25% above cost. The loading (profit element) included in the invoice price is:

A
B
C
D
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2026 Statistics

Key Facts: CMA Foundation Paper 2 (FFCA) Exam

100

Marks in the Paper

ICMAI Syllabus 2022

2 hours

Exam Duration

ICMAI Syllabus 2022

70% / 30%

Financial vs Cost Accounting

ICMAI Foundation Syllabus 2022

No

Negative Marking

ICMAI Foundation Pattern

40% / 50%

Pass: Paper / Aggregate

ICMAI Examination Rules

ICMAI CMA Foundation Paper 2, Fundamentals of Financial and Cost Accounting (FFCA), is an offline objective paper of 100 marks over 2 hours with no negative marking under Syllabus 2022. Section A, Fundamentals of Financial Accounting, carries 70% (accounting fundamentals 30%, accounting for special transactions 15%, preparation of final accounts 25%), and Section B, Fundamentals of Cost Accounting, carries 30%. To pass, candidates need 40% in the paper and 50% aggregate across all four Foundation papers.

Sample CMA Foundation Paper 2 (FFCA) Practice Questions

Try these sample questions to test your CMA Foundation Paper 2 (FFCA) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the dual aspect concept of accounting, every business transaction affects:
A.Only the profit and loss account
B.Only nominal accounts
C.Only one account
D.At least two accounts with equal debit and credit
Explanation: The dual aspect concept is the foundation of the double-entry system: every transaction has two aspects of equal value, recorded as a debit in one account and a credit in another, keeping the accounting equation (Assets = Liabilities + Capital) balanced.
2The accounting equation is best expressed as:
A.Assets = Liabilities − Capital
B.Capital = Assets + Liabilities
C.Assets = Capital + Liabilities
D.Liabilities = Assets + Capital
Explanation: The accounting equation states Assets = Capital + Liabilities (equivalently, Capital = Assets − Liabilities). It reflects that a firm's resources (assets) are financed by owners' funds (capital) and outsiders' funds (liabilities).
3The convention that requires anticipating no profit but providing for all possible losses is known as:
A.Materiality
B.Conservatism (prudence)
C.Full disclosure
D.Consistency
Explanation: The convention of conservatism (prudence) directs accountants not to anticipate profits but to provide for all probable losses, e.g., by creating a provision for doubtful debts and valuing stock at lower of cost or net realisable value.
4Purchase of a delivery van for use in the business is an example of:
A.Capital expenditure
B.Deferred revenue expenditure
C.Revenue receipt
D.Revenue expenditure
Explanation: Buying a delivery van creates a long-term asset that yields benefit over several years, so it is capital expenditure shown on the balance sheet, not charged fully to the profit and loss account in one period.
5According to the golden rule for nominal accounts under the traditional (British) approach, you debit:
A.All incomes and gains
B.The receiver
C.What comes in
D.All expenses and losses
Explanation: For nominal accounts the rule is: debit all expenses and losses, credit all incomes and gains. 'Debit the receiver' applies to personal accounts and 'debit what comes in' applies to real accounts.
6A trader sells goods on credit to Ram for Rs.5,000. Which journal entry is correct?
A.Ram Dr 5,000; To Cash A/c 5,000
B.Sales A/c Dr 5,000; To Ram 5,000
C.Ram Dr 5,000; To Sales A/c 5,000
D.Cash A/c Dr 5,000; To Sales A/c 5,000
Explanation: On a credit sale, the debtor (Ram) is debited because he is the receiver of goods and owes money, and Sales A/c is credited as income. No cash is involved at the point of a credit sale.
7Which of the following is a subsidiary book used to record only credit purchases of goods?
A.Sales book
B.Purchases book
C.Cash book
D.Journal proper
Explanation: The purchases book (purchases day book) records only credit purchases of goods meant for resale. Cash purchases go in the cash book, and credit sales go in the sales book.
8A petty cash book maintained on the imprest system means that:
A.The petty cashier is reimbursed the exact amount spent during the period
B.The petty cashier keeps a fixed unlimited balance
C.No record of petty payments is kept
D.The petty cashier passes all entries to the main cash book directly
Explanation: Under the imprest system the petty cashier starts with a fixed float, and at period-end is reimbursed exactly the amount spent, restoring the float to its original fixed level. This keeps control over small payments.
9In a three-column cash book, a contra entry arises when:
A.Goods are purchased for cash
B.Discount is allowed to a customer
C.Cash is paid to a creditor
D.Cash is deposited into the bank from office cash
Explanation: A contra entry affects both cash and bank columns of the same cash book, such as depositing office cash into the bank. It is marked with 'C' in the L.F. column because no separate ledger posting is needed.
10A bank reconciliation statement is prepared to reconcile the differences between:
A.The cash column and bank column of the cash book
B.Two different bank accounts
C.The cash book bank balance and the pass book balance
D.The trial balance and the balance sheet
Explanation: A bank reconciliation statement explains the difference between the bank balance per the cash book and the balance per the bank pass book (bank statement), caused by timing items like cheques issued but not presented or cheques deposited but not yet credited.

About the CMA Foundation Paper 2 (FFCA) Practice Questions

Verified exam format metadata for ICMAI CMA Foundation Paper 2: Fundamentals of Financial and Cost Accounting is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.