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CMA Foundation Practice Questions
Original practice questions for the Cost & Management Accountancy Foundation Examination (Institute of Cost Accountants of India (ICMAI)), mixed across 4 topics with instant answers and explanations. Practise by topic below or take the timed mock test.
CMA Foundation mixed practice
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Q1.Accounting & FinanceThe time value of money means:
Show answer & explanation
Answer: B — A sum today is worth more than the same sum in the future
Money available now can be invested to earn a return.
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Q2.Simple & Compound InterestFind the compound interest on ₹5,000 at 5% per annum for 3 years, compounded annually.
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Answer: C — ₹788.13
A = P(1 + R/100)^T = 5,000 × 1.05^3 = 5,788.13; CI = A − P = ₹788.13.
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Q3.Averages & StatisticsThe average of 11 numbers is 70. If 107 is added, what is the new average?
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Answer: B — 73.08
Old total = 11 × 70 = 770. New total = 770 + 107 = 877; new average = 877/12 = 73.08.
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Q4.Economy & Banking AwarenessInflation that is very high and accelerating is called:
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Answer: A — Hyperinflation
Hyperinflation is extremely rapid price growth (often >50% a month).
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Q5.Accounting & FinanceWhat is the present value of ₹3,000 received in 9 years at a 5% discount rate?
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Answer: C — ₹1,934
PV = FV/(1 + r)ⁿ = 3,000 / 1.05^9 = ₹1,934.
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Q6.Simple & Compound InterestFind the compound interest on ₹16,000 at 10% per annum for 2 years, compounded annually.
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Answer: B — ₹3,360
A = P(1 + R/100)^T = 16,000 × 1.10^2 = 19,360; CI = A − P = ₹3,360.
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Q7.Averages & StatisticsThe average of 8 numbers is 34. If 41 is added, what is the new average?
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Answer: D — 34.78
Old total = 8 × 34 = 272. New total = 272 + 41 = 313; new average = 313/9 = 34.78.
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Q8.Economy & Banking AwarenessThe repo rate is the rate at which:
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Answer: A — The central bank lends to commercial banks
Repo is the rate at which the central bank lends short-term funds to banks against securities.
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Q9.Accounting & FinanceUnder the accounting equation, Assets =
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Answer: D — Liabilities + Equity
Assets = Liabilities + Owners’ equity.
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Q10.Simple & Compound InterestFind the compound interest on ₹34,000 at 20% per annum for 3 years, compounded annually.
Show answer & explanation
Answer: C — ₹24,752
A = P(1 + R/100)^T = 34,000 × 1.20^3 = 58,752; CI = A − P = ₹24,752.
About CMA Foundation
Cost & Management Accountancy Foundation Examination — conducted by Institute of Cost Accountants of India (ICMAI). The entry level of the CMA course, covering accounting, law, business mathematics and statistics.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
Practise by topic
- Accounting & Finance questions — Master the accounting equation, the three financial statements and time value of money: FV = PV(1 + r)ⁿ, PV of an annuity = PMT × [1 − (1 + r)⁻ⁿ]/r.
- Simple & Compound Interest questions — Simple interest grows linearly (PRT/100); compound interest multiplies by (1 + r/100) each period.
- Averages & Statistics questions — Average × count = total: most average questions are really about totals.
- Economy & Banking Awareness questions — Know what each regulator does (RBI, SEBI, IRDAI, PFRDA), the policy tools (repo, CRR, SLR) and the definitions behind GDP, inflation and fiscal deficit.
- CMA Foundation mock test — 25 timed questions with negative marking.
CMA Foundation practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |
| Averages & Statistics | Quantitative aptitude | Calculated (new numbers every set) |
| Economy & Banking Awareness | General awareness | Question bank |