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100+ Free CMA Inter Paper 11 (FMDA) Practice Questions

CMA Intermediate Paper 11: Financial Management and Business Data Analytics practice questions are available now; exam metadata is being verified.

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A company has net profit after tax of Rs.2,40,000 and 80,000 equity shares outstanding. Its Earnings Per Share (EPS) is:

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B
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2026 Statistics

Key Facts: CMA Inter Paper 11 (FMDA) Exam

100

Marks

ICMAI Syllabus 2022

3 hours

Duration

ICMAI Exam Pattern

~80%

Financial Management (Section A)

ICMAI Syllabus 2022

~20%

Business Data Analytics (Section B)

ICMAI Syllabus 2022

Group II

Intermediate Group

ICMAI Syllabus 2022

No

Negative Marking

ICMAI Exam Pattern

CMA Intermediate Paper 11, Financial Management and Business Data Analytics (FMDA), is a Group II paper under ICMAI Syllabus 2022. The paper carries 100 marks and a 3-hour duration with objective and descriptive questions and no negative marking. Section A, Financial Management, accounts for about 80% and covers fundamentals, time value of money, financial markets, ratio analysis, cost of capital, capital budgeting, working capital, and financing and dividend decisions. Section B, Business Data Analytics, accounts for about 20% and covers data science for decision-making, data processing, cleaning, validation, visualisation, and modelling. ICMAI publishes an official MCQ bank for practice; this free set adds 100 MCQs with full explanations.

Sample CMA Inter Paper 11 (FMDA) Practice Questions

Try these sample questions to test your CMA Inter Paper 11 (FMDA) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which statement best describes the primary objective of financial management as taught in the CMA Intermediate FMDA syllabus?
A.Maximisation of shareholders' wealth measured by the market value of the firm
B.Maximisation of accounting profit in the current year
C.Maximisation of total sales revenue regardless of cost
D.Minimisation of the firm's tax liability above all else
Explanation: Modern financial management treats wealth maximisation (maximising the market value of equity) as the primary goal because it accounts for the timing of cash flows, risk, and the time value of money. Profit maximisation is criticised for ignoring risk and timing.
2The three broad financial decisions that a finance manager makes are the investment decision, the financing decision, and the:
A.Production scheduling decision
B.Dividend (distribution) decision
C.Recruitment decision
D.Pricing decision
Explanation: The finance function comprises three core decisions: the investment (capital budgeting) decision, the financing (capital structure) decision, and the dividend decision regarding distribution versus retention of profits.
3A conflict of interest between shareholders (principals) and managers (agents) of a company is best described by which concept?
A.Trade-off theory
B.Pecking order theory
C.Agency problem
D.Arbitrage pricing
Explanation: The agency problem arises when managers (agents) act in their own interest rather than maximising owners' (principals') wealth. Agency costs include monitoring and bonding costs incurred to align the two parties' interests.
4Which of the following correctly distinguishes the 'profit maximisation' objective from the 'wealth maximisation' objective?
A.Wealth maximisation ignores the time value of money while profit maximisation considers it
B.Profit maximisation considers risk explicitly while wealth maximisation does not
C.Both objectives are identical in every respect
D.Wealth maximisation considers the time value of money and risk, whereas profit maximisation ignores both
Explanation: Wealth maximisation discounts future cash flows for risk and timing, giving a more complete measure of value. Profit maximisation looks only at the magnitude of profit and ignores when and how risky those profits are.
5Time value of money is relevant in financial decisions chiefly because:
A.A rupee received today is worth more than a rupee received in the future due to its earning capacity
B.Inflation always equals zero in financial models
C.Money never loses purchasing power over time
D.Interest rates are irrelevant to investment decisions
Explanation: The time value of money rests on the principle that money has an opportunity to earn a return; therefore a rupee today can be invested to grow, making it worth more than the same rupee received later.
6What is the future value of Rs.10,000 invested for 3 years at 10% per annum compounded annually? (Use 1.10^3 = 1.331)
A.Rs.13,000
B.Rs.13,310
C.Rs.13,100
D.Rs.11,331
Explanation: Future value = PV x (1 + r)^n = 10,000 x (1.10)^3 = 10,000 x 1.331 = Rs.13,310. Compounding applies interest on interest each year.
7The present value of Rs.50,000 receivable at the end of 2 years at a discount rate of 12% (PV factor for year 2 at 12% = 0.797) is approximately:
A.Rs.44,000
B.Rs.50,000
C.Rs.39,850
D.Rs.62,720
Explanation: PV = Future amount x PV factor = 50,000 x 0.797 = Rs.39,850. Discounting converts a future sum to its equivalent value today.
8An annuity that provides equal cash flows at the BEGINNING of each period is called:
A.Ordinary annuity
B.Perpetuity
C.Deferred annuity
D.Annuity due
Explanation: An annuity due has payments at the start of each period, so each cash flow is discounted/compounded for one less period than an ordinary annuity, making its value (1 + r) times that of an ordinary annuity.
9The present value of a perpetuity of Rs.6,000 per year at a discount rate of 8% is:
A.Rs.75,000
B.Rs.48,000
C.Rs.60,000
D.Rs.480,000
Explanation: PV of a perpetuity = Cash flow / r = 6,000 / 0.08 = Rs.75,000. A perpetuity capitalises a constant cash flow indefinitely by dividing by the discount rate.
10If the nominal (stated) annual interest rate is 12% compounded quarterly, the effective annual rate (EAR) is closest to: (1.03^4 = 1.1255)
A.12.00%
B.12.55%
C.3.00%
D.48.00%
Explanation: EAR = (1 + i/m)^m - 1 = (1 + 0.12/4)^4 - 1 = (1.03)^4 - 1 = 1.1255 - 1 = 0.1255, i.e. 12.55%. Compounding more frequently than annually raises the effective rate above the nominal rate.

About the CMA Inter Paper 11 (FMDA) Practice Questions

Verified exam format metadata for CMA Intermediate Paper 11: Financial Management and Business Data Analytics is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.