CMA Foundation Dec 2026 | Paper 2 FFCA — Final Accounts ALL MCQs Solved

CMA Foundation December 2026 students — this video covers ALL MCQs on Final Accounts from Paper 2 (FFCA), solved one by one with clear reasoning for each option. 📌 What's covered in this video: ✅ Prepaid, outstanding, and accrued items in Trial Balance and Balance Sheet ✅ Closing stock calculation — Trading Account balancing figure technique ✅ Net Worth, Gross Profit, and Cost of Goods Sold (COGS) formulas ✅ Opening/closing stock effect on profit ✅ Capital Account — finding additional capital or drawings ✅ Provision for Doubtful Debts and Provision for Discount on Debtors ✅ Current assets vs current liabilities classification ✅ Contingent liability vs provision ✅ Operating income vs non-operating income ✅ Capital reserve on receipt of a free asset ✅ Appropriation vs charge against profit ✅ Free downloadable PDF with all solved MCQs 🎯 Final Accounts ties together every concept from earlier chapters — Trading Account, Balance Sheet classification, and provisions — making this one of the highest-weightage, most repeated chapters in CMA Foundation FFCA. 📥 FREE PDF DOWNLOAD: Link available in the description box below and pinned as the first comment. 💬 Got doubts on any question? Drop them in the comments — I'll help you out. ⏱️ TIMESTAMPS: 0:01 Intro — Final Accounts MCQs 0:18 Prepaid Expense Classification 0:42 Bad Debts as Selling Overhead 1:02 Net Worth — Formula 1:23 Opening Stock Increase — Effect on Profit 1:58 Finding Additional Capital via Capital Account 2:43 Goods Used in Making Furniture — Credit Entry 2:58 Closing Stock Calculation (Trading Account Method) 4:57 Debtor Balance with Old vs New Provisions 7:16 Provision for Bad Debt — Definition 7:16 Prepaid Expenses — Loans & Advances 7:40 Appropriation of Profit vs Charge Against Profit 8:09 Balance Sheet — Financial Position on a Date 8:31 Closing Stock Calculation (GP on Cost) 9:46 Profit on Cost vs Profit on Sale Conversion 10:15 Cost of Goods Sold (COGS) Calculation 11:53 Debtors Shown at Net Realizable Value 12:24 Balances Not Carried Forward (Nominal Accounts) 13:13 Purpose of Preparing P&L Account 13:48 Trade Discount vs Cash Discount 14:29 Closing Stock — GP on Sales Method 15:30 Provision for Discount on Debtors — Basis 16:14 Interest on Debentures — Charge Against Profit 16:43 Money Measurement Concept — Financial Statements 17:50 Fixed Asset Received as Gift — Capital Reserve 18:23 Work in Progress — Asset Classification 18:43 Gross Profit Formula 18:58 TDS — Asset Side of Balance Sheet 19:24 Operating Income vs Non-Operating Income 20:23 Current Assets vs Current Liabilities 21:35 Provision for Discount — Calculation Example 22:58 Purpose of Manufacturing Account 23:40 Effect of Bad Debt Recovery 24:18 Contingent Liability — Court Case Example 25:06 Finding Sales from GP on Sales Percentage 27:48 COGS Formula — Rearranged for Purchases 👉 Subscribe for more CMA Foundation Paper 2 FFCA chapter-wise MCQ solving, free study material, and exam strategy. --- 🔗 Useful Links: Free PDF (Final Accounts MCQs Solved): [link in description/pinned comment] Full ICMAI Question Bank Playlist: Must Do Kit For December 2026: ❓ FREQUENTLY ASKED QUESTIONS Q1. What is Net Worth in accounting? A. Net Worth is calculated as Total Assets minus Outside (external) Liabilities — it represents the owner's actual stake in the business. Q2. How does an increase in opening stock affect profit? A. Opening stock has an inverse relationship with profit — if opening stock increases, both gross profit and net profit for the current year will decrease. Q3. How do you calculate closing stock using the Trading Account method? A. Prepare a Trading Account with sales on the credit side and opening stock, purchases, and direct expenses on the debit side. Calculate gross profit based on the given percentage, then closing stock is derived as the balancing figure. Q4. At what value are debtors (accounts receivable) shown in the balance sheet? A. Debtors are shown at their Net Realizable Value — i.e., debtors minus the provision for doubtful debts (and minus provision for discount, if applicable). Q5. What is the difference between a provision and an appropriation of profit? A. A provision (like provision for tax, depreciation, or doubtful debts) is a charge against profit — it's deducted before arriving at net profit. An appropriation (like transfer to reserves) is a use of profit after it has been determined. Q6. How is the provision for discount on debtors calculated? A. Take the total debtors, deduct any further bad debts (if any), and deduct the provision for doubtful debts. The discount provision percentage is then applied to this remaining "good debtors" figure. #CMAFoundation #FFCA #FinalAccounts #CMAFoundationDecember2026