CMA Interview Questions & Answers

FINANCIAL ACCOUNTING

• Name the steps of Accounting Cycle?

• What is Matching Concept in Accounting?

• What is Double Entry Concept in Accounting?

• What is Cash Flow Statement in Accounting?

• What is Golden Rule of Accounting?

• Name some Balance Sheet GL accounts?

• Name some Profit & Loss GL accounts?

• Where do we adjust Depreciation in Balance sheet?

• Why Investment is Liability for a firm?

• Why Loss for a company is shown as an Asset in Balance Sheet?

• Name the asset (apart from land & building) which is not depreciated?

• What is the formula to get Net Profit?

• What is the journal entry for Credit Purchase?

• What is the journal entry for Credit Sales?

• What is the journal entry for Cash Sales?

• What is the journal entry for Payroll?

• What is the journal entry for Petty Cash?

• What is the journal entry for Accrued Income?

• What is the journal entry for Accrued Expense?

• What is the journal entry for Prepaid Expense?

• What is the journal entry for Prepaid Income?

• What is the journal entry for Cash Purchase?

• What is the journal entry for Transfer of Revenue to Income summary?

• What is the journal entry for Transfer of Expense to Income summary?

• What is the journal entry for Transfer of Net Profit to Retained Earning?

• What is the journal entry for Transfer of Net Loss to Retained Earning?

• What is the journal entry for Transfer of Dividend to Retained Earning?

• What is the journal entry for Depreciation?

COST ACCOUNTING

• Define Standard Cost?

• Define Moving Average Price?

• What do you mean by Overhead?

• What do you mean by Manufacturing Overhead?

• What do you mean by Overhead Absorption Rate?

• What do you mean by Indirect Labour?

• What do you mean by Indirect Material?

• What do you mean by Utilities?

• What do you mean by Physical cost?

• What do you mean by Financial Cost?

• What do you mean by Product Cost Collector?

• What do you mean by Profit Centre?

• What do you mean by Cost Centre?

• What do you mean by Cost Element?

• What do you mean by Variance?

• What is the formula to calculate Moving Average Price?

• What is the formula to calculate Material Cost Variance?

• What is the formula to calculate Material Price Variance?

• What is the formula to calculate Material Usage Variance?

• What is the formula to calculate Material Mix Variance?

• What is the formula to calculate Material Yield Variance?

• What is the formula to calculate Labour Cost Variance?

• What is the formula to calculate Labour Rate Variance?

• What is the formula to calculate Labour Efficiency Variance?

• What is the formula to calculate Labour Mix Variance?

• What is the formula to calculate Labour Yield Variance?

• What is the formula to calculate Variable Overhead Cost Variance?

• What is the formula to calculate Variable Overhead Efficiency Variance (in Hrs.)?

• What is the formula to calculate Variable Overhead Expenditure Variance (in Rate)?

• What is the formula to calculate Fixed Overhead Cost Variance?

• What is the formula to calculate Fixed Overhead Expenditure Variance?

• What is the formula to calculate Fixed Overhead Volume Variance?

• What are some examples of Fixed Overhead?

• What are some examples of Variable Overhead?

• What are some examples of Semi-Variable Overhead?

INDIRECT TAXATION

• What is GST..??

• What are the taxes that GST replaces?

• Constitution Validity of GST

• What is the taxable event under GST..??

• What do you mean by ITC..??

• What is GST Council.??

• What do you mean by Supply..??

• What do you mean by block credit..??

• What is the condition for availing of ITC..??

• Who are liable to take compulsory registration..??

• When Valuation rules will apply..??

• What is the importance of POS..??

• What is the Importance of TOS..??

• How many types of returns under GST..??

• Do you know the due dates of returns..??

• What is an Advance ruling..??

• Why government introduces E-way bills..??

• When TDS or TCS provision will apply..??

• Who is the Casual taxable person..??

FINANCIAL MANAGEMENT

• What is the importance of financial management..??

• What is the basic objective of financial management..??

• How many types of Souces of finance..??

• Give some examples of long-term sources of finance..??

• Give some examples of short-term sources of finance..??

• Explain the disadvantage of equity share capital..??

• What is preference share capital..??

• What are different kinds of debenture..??

• What is Bond..??

• What is masala Bond..??

• What do you mean by Bridge finance..??

• What do you mean by lease..??

• What is the difference between operating lease and financing lease..??

• What do you mean by commercial paper..??

• What do you mean by Treasury Bills..??

• What is an inter-corporate deposit..??

• What is working Capital..??

• What is permanent working capital..??

• What is temporary working capital..??

• What is working capital cycle..??

DIRECT TAXATION

• How many heads of Income..??

• What is Assessment year..??

• What are the rates of tax for companies..?

• Who are eligible for rebate under section 87A..?

• What is TDS..??

• What is Minimum alternate tax (MAT)?

• What is the Securities Transaction Tax.?

• What is the difference between profit and gain?

• What are the types of Provident funds?

• How will you calculate House Rent Allowance (HRA)?

• What do you understand by total income?

• What is the limit of leave encashment..??

• What is the limit of Retrenchment Compensation..??

• Exemptions list under section 10.

• Exemption under Section 10 (1) on agricultural income

• Exemption under Section 10 (2) on income received by a coparcener from the HUF

• Exemption under Section 10 (2A) on profit received by a partner from a firm

• Exemption under Section 10 (5) on Leave Travel Allowance /Concession paid to an employee

• Exemption under Section 10 (7) on perquisites and allowances paid by the Government to its employees outside India

• Exemption under Section 10 (8) on income paid to employees of foreign countries working in India

• Exemption under Section 10 (10) on gratuity income received by an employee

• Exemption under Section 10 (10A) on commuted pension

• Exemption under Section 10 (11) on payment from Statutory Provident Fund

• Exemption under Section 10 (11A) on payment from Sukanya Samriddhi Yojana

• Deduction list under chapter VI-A.

• Deduction u/s 80C in respect of LIC premium, contributions to PF, etc.

• Deduction u/s 80CCC in respect of contribution to Pension Fund

• Deduction u/s 80CCD in respect of contribution to pension scheme

• Deduction in respect of contributions to political parties [Sec. 80GGB]

• Deduction in respect of contributions given by any person to political parties [Sec. 80GGC]

• Deduction u/s 80QQB in respect of royalty income of authors of books 

• Deduction u/s 80RRB in respect of royalty on patents 

• Deduction in respect of interest on deposits in savings account [Sec. 80TTA]

• Deduction in respect of interest on deposits in case of senior citizens [Sec. 80TTB]

• Deduction u/s 80U in respect of person with disability