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100+ Free CMA Inter Paper 6 Practice Questions

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Key Facts: CMA Inter Paper 6 Exam

100 marks

Paper 6 Total Marks

ICMAI 2022 Syllabus

3 hours

Exam Duration

ICMAI 2022 Syllabus

Group I

Paper Group

ICMAI Intermediate Course

40% / 50%

Paper and Group Pass Marks

ICMAI Passing Criteria

20%

Accounting Standards Weight

ICMAI 2022 Syllabus

100 MCQs

Free Practice Questions

OpenExamPrep

CMA Inter Paper 6 Financial Accounting is a 100-mark, 3-hour descriptive written paper in Group I of the ICMAI 2022 syllabus. Official sections and marks weightings are Accounting Fundamentals 15%, Accounting for Special Transactions 10%, Preparation of Financial Statements 20%, Partnership Accounts 20%, Branch/Departmental plus Lease, Hire Purchase and Insurance Claims, and Accounting Standards 20%. Although the real exam is descriptive, ICMAI publishes an official MCQ Question Bank, so this free bank delivers 100 MCQs as knowledge prep. The pass standard is 40% in the paper and 50% aggregate in the group.

Sample CMA Inter Paper 6 Practice Questions

Try these sample questions to test your CMA Inter Paper 6 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 one account
B.Only the cash account
C.Only the profit and loss account
D.At least two accounts with equal debit and credit
Explanation: The dual aspect concept holds that every transaction has two effects of equal value, recorded as a debit in one account and a credit in another, which keeps the accounting equation (Assets = Liabilities + Capital) in balance.
2The going concern assumption justifies which of the following accounting practices?
A.Recording assets at net realisable value
B.Writing off all assets in the year of purchase
C.Treating all expenses as paid in cash
D.Charging depreciation over an asset's useful life
Explanation: Going concern assumes the entity will continue operating for the foreseeable future, so fixed assets are carried at cost and their cost is spread as depreciation over the periods they benefit rather than written off immediately.
3A company recognises revenue only when goods are delivered, even though the order and advance were received earlier. Which concept does this follow?
A.Matching concept
B.Conservatism concept
C.Money measurement concept
D.Realisation concept
Explanation: The realisation concept holds that revenue is recognised when it is earned, generally when goods are delivered or services rendered and the risks and rewards pass, not merely when an order or advance is received.
4Which of the following is a real account under the traditional classification of accounts?
A.Rent account
B.Capital account
C.Machinery account
D.Debtors account
Explanation: Real accounts relate to tangible and intangible assets. Machinery is a tangible asset, so its account is a real account, governed by the rule 'debit what comes in, credit what goes out'.
5The convention of conservatism in accounting is best reflected by:
A.Recording closing stock at lower of cost or net realisable value
B.Recording all anticipated gains immediately
C.Ignoring contingent liabilities entirely
D.Valuing fixed assets at market price
Explanation: Conservatism (prudence) requires anticipating losses but not gains. Valuing closing stock at the lower of cost or net realisable value ensures unrealised losses are recognised while unrealised profits are not.
6Outstanding salary appearing in the trial balance is treated in final accounts as:
A.An expense and a current liability
B.A current asset only
C.Income in the profit and loss account
D.A reduction from capital only
Explanation: Outstanding salary is an accrued expense already added to the salary charge in the profit and loss account; as it remains unpaid at year-end it is shown as a current liability in the balance sheet.
7A trial balance shows total debits of Rs 5,00,000 and total credits of Rs 5,00,000. This confirms:
A.The books are free of all errors
B.Compensating errors are absent
C.No errors of principle exist
D.Arithmetical accuracy of ledger postings
Explanation: A balanced trial balance only proves the arithmetical accuracy of postings (equal debits and credits). It cannot detect errors of principle, omission, commission to the correct side, or compensating errors.
8Goods costing Rs 10,000 were taken by the proprietor for personal use. The correct journal entry is:
A.Debit Purchases, Credit Drawings
B.Debit Capital, Credit Sales
C.Debit Sales, Credit Drawings
D.Debit Drawings, Credit Purchases
Explanation: When the proprietor withdraws goods, Drawings is debited and Purchases is credited (reducing purchases by cost). This removes the goods from business stock without treating the withdrawal as a sale.
9Which financial statement is prepared by a not-for-profit organisation in place of a profit and loss account?
A.Receipts and Payments Account
B.Manufacturing Account
C.Trading Account
D.Income and Expenditure Account
Explanation: Not-for-profit organisations prepare an Income and Expenditure Account on the accrual basis, which corresponds to a profit and loss account and shows the surplus or deficit for the period.
10In a Receipts and Payments Account of a club, the opening and closing balances represent:
A.Surplus and deficit
B.Accrued income
C.Capital fund
D.Cash and bank balances
Explanation: The Receipts and Payments Account is essentially a summarised cash book; its opening and closing balances are the cash and bank balances at the start and end of the period, irrespective of the year to which items relate.

About the CMA Inter Paper 6 Exam

CMA Intermediate Paper 6 (Financial Accounting) is a Group I paper under the ICMAI 2022 syllabus testing accounting fundamentals, Accounting Standards, special transactions, financial statement preparation, partnership accounts, company accounts, branch and departmental accounts, and lease, hire purchase and insurance claims.

Assessment

Question count not published by the exam provider

Time Limit

3 hours

Passing Score

40% in the paper and 50% aggregate in the group

Exam Fee

Included in the ICMAI CMA Intermediate registration and term examination fees; no separate per-paper fee (The Institute of Cost Accountants of India (ICMAI))

CMA Inter Paper 6 Exam Content Outline

15%

Accounting Fundamentals

Accounting concepts, conventions, GAAP, capital and revenue items, depreciation methods, rectification of errors, bank reconciliation, and trial balance preparation.

10%

Accounting for Special Transactions

Bills of exchange, accommodation bills, consignment accounting with normal and abnormal loss, and joint venture accounting with and without separate books.

20%

Preparation of Financial Statements

Final accounts of commercial entities, not-for-profit organisations, and accounts from incomplete records under the single entry system.

20%

Partnership Accounts

Admission, retirement, death, goodwill, revaluation, profit-sharing ratios, dissolution, and the Garner v. Murray rule on partner insolvency.

10%

Company Accounts (Shares and Debentures)

Issue, forfeiture and re-issue of shares, securities premium, pro-rata allotment, and issue of debentures including collateral security and loss on issue.

10%

Branch and Departmental Accounts

Dependent and independent branches, debtors and stock-and-debtors systems, foreign branch conversion, and departmental apportionment with inter-department transfers.

15%

Lease, Hire Purchase and Insurance Claims

AS 19 lease classification, hire purchase interest and repossession, and insurance claims for loss of stock and loss of profit under the average clause.

How to Pass the CMA Inter Paper 6 Exam

What You Need to Know

  • Passing score: 40% in the paper and 50% aggregate in the group
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours
  • Exam fee: Included in the ICMAI CMA Intermediate registration and term examination fees; no separate per-paper fee

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CMA Inter Paper 6 Study Tips from Top Performers

1Treat Paper 6 as practice-heavy: solve full sums with working notes rather than only reading theory.
2Memorise the examinable Accounting Standards and revise their key rules, because AS theory carries roughly a fifth of the marks.
3Master partnership adjustments (admission, retirement, death, dissolution) since this single section carries about 20% of the marks.
4Build accuracy with average-clause insurance claims and hire purchase interest using outstanding-balance computations.
5Use the official ICMAI MCQ Question Bank to verify conceptual accuracy before attempting full descriptive sums.
6Take timed 3-hour mock papers to manage pacing across computational and theory questions.

Frequently Asked Questions

Is CMA Inter Paper 6 a multiple-choice exam?

No. ICMAI Paper 6 Financial Accounting is a 100-mark descriptive written paper requiring full working notes. ICMAI, however, publishes an official MCQ Question Bank, so MCQ practice is a useful and recognised way to build conceptual accuracy and speed.

What is the marks weightage of CMA Inter Paper 6?

Under the ICMAI 2022 syllabus, the broad weightings are Accounting Fundamentals 15%, Special Transactions 10%, Preparation of Financial Statements 20%, Partnership Accounts 20%, Accounting Standards 20%, and the Lease, Branch and Departmental Accounts group 15%.

How much time is given for CMA Inter Paper 6?

Candidates get 3 hours to attempt the 100-mark Paper 6 Financial Accounting examination conducted offline at ICMAI centres.

What is the passing criteria for CMA Inter Paper 6?

A candidate must score a minimum of 40% in the individual paper and 50% in aggregate across the group to pass under ICMAI rules, with exemptions granted for papers scoring 60% or more.

Which Accounting Standards are important for Paper 6?

Frequently tested standards include AS 1, AS 2, AS 3, AS 4, AS 5, AS 9, AS 10, AS 11, AS 12, AS 13, AS 16, AS 19, and AS 26, covering policies, inventories, cash flows, revenue, fixed assets, and leases.

Is Paper 6 in Group I or Group II of CMA Inter?

Financial Accounting is Paper 6 and falls under Group I of the CMA Intermediate course in the ICMAI 2022 syllabus.

Are company accounts (shares and debentures) covered in Paper 6?

Yes. Paper 6 covers the basics of company accounts including issue, forfeiture and re-issue of shares and the issue of debentures, while more advanced corporate accounting appears in later CMA papers.

How should I prepare for the computational parts of Paper 6?

Practise partnership, consignment, branch, hire purchase, and insurance-claim sums with full working notes, then test recall with MCQs to verify conceptual accuracy before timed mock papers.