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NET/SET Workshop

Presentation by:

Dr Jyoti Thakur

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Pattern of Test Session Paper   Marks Duration

First I

60 out of which 50 questions are to be attempted50x2 = 100

1¼ Hours

First II

50 questions all of which are compulsory

50x2 = 100

1¼ Hours

Second

75 questions all of which are compulsory

75x2 = 150

2½ Hours

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QUALIFYING MARKS

CATEGORY

MINIMUM QUALIFYING MARKS

PAPER - I PAPER - II PAPER-III

General 40 (40%) 40 (40%) 75 (50%)

OBC 35 (35%) 35 (35%) 67.5 (45%) rounded off to 68

PH/VH/SC/ST 35 (35%) 35 (35%) 60 (40%)

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Paper-II & Paper-III: Subject Related

• Compulsory objective type questions of 2 marks each.

• Mark the responses for questions on the Optical Mark Reader (OMR) sheet.

• Use Blue/ Black ball point pen only.• Calculators/ log tables not allowed.• Paper-III Pattern Revised from June 2012.

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Unit II: Financial & Management Accounting

• Basic Accounting Concepts, Capital & Revenue, Financial Statements.

• Partnership Accounts: Admission, Retirement, Death, Dissolution & Cash Distribution.

• Advanced Company Accounts: Issue, Forfeiture & Purchase of Business, Liquidation, Valuation of Shares, Amalgamation, Absorption & Reconstruction, Holding Company Accounts.

Contd…………

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Unit II: Financial & Management Accounting

• Cost & Management Accounting: Ratio Analysis, Funds Flow Analysis, Cash Flow Analysis, Marginal Costing & Break Even Analysis, Standard Costing, Budgetary Control, Costing for Decision Making, Responsibility Accounting.

Accounting Concepts and ConventionsConcepts• Business Entity Concepts • Money Measurement

Concept• Cost Concept• Going Concern Concept.• Dual Asset Concept• Realization Concept• Accrual Concept• Accounting Period • Revenue Match Concept

Conventions:• Consistency• Disclosure• Conservatism• Materiality

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Capital and RevenueReceipts:• Capital• RevenueExpenditure:• Capital• Revenue• Deferred Revenue Expenditure

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Analysis of Financial Statements

• Comparative Analysis.

• Common size Statements.

• Trend Analysis Percentage.

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Partnership Accounts

• Admission of partner• Retirement of Partner• Death of Partner• Dissolution of Partnership• Interest on Drawings.• Guarantee of profit.

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Advanced Company Accounts• Allotment• Calls on shares• Forfeiture of Shares.• Pro-rata Allotment of shares• Issue of shares at Premium, par and Discount• Debenture and Redemption of Debentures.

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Purchase of Business• Purchase Consideration

– Net Payment method.– Net Asset Method– Lump-sum method• Amalgamation

AbsorptionExternal Reconstruction.Alteration of Share CapitalConsolidation of ShareSubdivision of Shares.

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Financial Analysis• Ratio Analysis:

– Liquidity ratios– Profitability Ratios.– Equity Fund Related Ratios– Efficiency Ratios.– Returns on Investment Ratios.• Fund Flow Statements• Cash Flow Statements

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Marginal Costing and BEP• Marginal Cost Statement

S-V= CP/V RatioBEPMargin of Safety.

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Standard Costing

• Material Variances• Labour Variances.

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Budgetory Control

• Fixed Budget.• Flexible Budget• Master Budget• Functional Budget.• Cash Budget.• Zero Based Budgeting

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Responsibility Accounting• Responsibility Centre

– Cost Centre– Revenue Centre– Profit Centre– Investment Centre• Types of ReportsStatutory Report (Section 165)Auditors ReportAnnual Report

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REFERENCE BOOKS: ACCOUNTING & FINANCE

1. S. N. Inamdar/ I.M. Pandey/ Khan & Jain/ Ravi Kishore, Financial Management

2. Prasanna Chandra, Financial Management – Theory and Practice, Tata McGraw–Hill Publishing Company India, Delhi

3. BSE Publications on Capital Market Studies4. MFI Publications on Capital Market Studies5. ICAI, Accounting Standards 6. Gupta/ shukla & Grewal, Advanced Accounting 7. M. N. Arora, Cost and Management Accounting8. Ravi Kishore, Management Accounting

REFERENCE BOOKS : NET

• Paper 1: Upkar/ Pragati Publication• Paper 2: Upkar/ Pragati/ Subject

related references• Paper 3: Upkar/ Pragati/ Subject

related references

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Amount spent on advertising campaign the benefit of which is likely to last for 3 to 4 years is:

A. Capital expenditureB. Revenue expenditureC. Deferred revenue expenditureD. Deferred capital expenditure

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Amount spent on advertising campaign the benefit of which is likely to last for 3 to 4 years is:

A. Capital expenditureB. Revenue expenditureC. Deferred revenue expenditureD. Deferred capital expenditure

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Cash flows arising from Dividend paid in the case of a financial enterprise is a cash flow from:

A. Operating activitiesB. Financing activitiesC. Both (A) & (B)D. Investing activities

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Cash flows arising from interest paid in the case of a financial enterprise is a cash flow from:

A. Operating activitiesB. Financing activitiesC. Both (A) & (B)D. Investing activities

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What do you mean by “cash equivalents”?

A. Bank balanceB. Short term highly liquid securitiesC. InvestmentsD. Investment in Debentures

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What do you mean by “cash equivalents”?

A. Bank balanceB. Short term highly liquid securitiesC. InvestmentsD. Investment in Debentures

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Which of the following is an efficiency ratio?

A. Price Earning ratioB. Debt Equity ratioC. Acid Test ratioD. Average Collection period

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Which of the following is an efficiency ratio?

A. Price Earning ratioB. Debt Equity ratioC. Acid Test ratioD. Average Collection period

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True or False1. Common size statements are used for both horizontal and

vertical analysis. 2. Unclaimed dividends are classified as current assets in

financial statements. 3. Gross working capital = Current Assets – Current Liabilities. 4. High Bank overdraft means low working capital.

A. True, False, False, True.B. All statements are True.C. All statements are False.D. False, False, True, True.

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True or False1. Common size statements are used for both horizontal and

vertical analysis. 2. Unclaimed dividends are classified as current assets in

financial statements. 3. Gross working capital = Current Assets – Current Liabilities. 4. High Bank overdraft means low working capital.

A. True, False, False, True.B. All statements are True.C. All statements are False.D. False, False, True, True.

Which of the following forms an item of Current Assets?

A. Loans GivenB. Loans TakenC. Bank balanceD. Bank OverdraftE. Capital

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Which of the following forms an item of Current Assets?

A. Loans GivenB. Loans TakenC. Bank balanceD. Bank OverdraftE. Capital

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Identify the synonymous terms for Shareholders’ Funds

A. Net WorthB. InvestmentC. Live StockD. Proprietary EquityE. Preferred Capital

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Identify the synonymous terms for Shareholders’ Funds

A. Net WorthB. InvestmentC. Live StockD. Proprietary EquityE. Preferred Capital

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Read the following statements

(i) “Working Capital is the amount of funds necessary to cover the cost of operating the enterprise.”

(ii) “Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.”

(A) (i) and (ii) both are correct. (B) (i) and (ii) both are false. (C) (i) is correct, but (ii) is false. (D) (i) is false, but (ii) is correct.

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Read the following statements

(i) “Working Capital is the amount of funds necessary to cover the cost of operating the enterprise.”

(ii) “Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.”

(A) (i) and (ii) both are correct. (B) (i) and (ii) both are false. (C) (i) is correct, but (ii) is false. (D) (i) is false, but (ii) is correct.

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Which one of the following is correct ?

(i) A ratio is an arithmetical relationship of one number to another number.

(ii) Liquid ratio is also known as acid test ratio. (iii) Rule of thumb for current ratio is 2 : 1. (iv) Debt equity ratio is the relationship between outsiders’ fund and

shareholders’ fund.

(A) All (i), (ii), (iii) and (iv) are correct. (B) Only (i), (ii) and (iii) are correct. (C) Only (ii), (iii) and (iv) are correct. (D) Only (ii) and (iii) are correct.

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Which one of the following is correct ?

(i) A ratio is an arithmetical relationship of one number to another number.

(ii) Liquid ratio is also known as acid test ratio. (iii) Rule of thumb for current ratio is 2 : 1. (iv) Debt equity ratio is the relationship between outsiders’ fund and

shareholders’ fund.

(A) All (i), (ii), (iii) and (iv) are correct. (B) Only (i), (ii) and (iii) are correct. (C) Only (ii), (iii) and (iv) are correct. (D) Only (ii) and (iii) are correct.

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Which of the following term is used to represent the proportionate relationship

between debt and equity ? (A) Cost of Capital (B) Capital Budgeting (C) Assets Structure (D) Capital Structure

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Which of the following term is used to represent the proportionate relationship

between debt and equity ? (A) Cost of Capital (B) Capital Budgeting (C) Assets Structure (D) Capital Structure

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The manager is held responsible for both Cost and Revenue is

1. Cost Centre2. Profit Centre3. Investment Centre4. Revenue Centre

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The manager is held responsible for both Cost and Revenue is

1. Cost Centre2. Profit Centre3. Investment Centre4. Revenue Centre

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Cash Budget is:1.An Estimates of Cash Receipts and Payments during a given period of time.2. Based on accrual Basis of Accounting

• A) Both 1 and 2 are correct• B) 1 is correct and 2 is incorrect• C) Both are false.• D) 1 is false and 2nd is correct

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Cash Budget is:1.An Estimates of Cash Receipts and Payments during a given period of time.2. Based on accrual Basis of Accounting

• A) Both 1 and 2 are correct• B) 1 is correct and 2 is incorrect• C) Both are false.• D) 1 is false and 2nd is correct

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Marginal Cost Equation isa) S= V+Cb) S= V+Fc) S= F+/-P/Ld) S= V+F+/-P/L

• A) a &b B) b & c C) a & C D) a & d

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Marginal Cost Equation isa) S= V+Cb) S= V+Fc) S= F+/-P/Ld) S= V+F+/-P/L

• A) a &b B) b & c C) a & C D) a & d

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............................... represents the assets backing for equity shares value

• (A) Fair value• (B) Market value • (C) Intrinsic value • (D) Book

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Marginal Cost Equation isa) S= V+Cb) S= V+Fc) S= F+/-P/Ld) S= V+F+/-P/L

• A) a &b B) b & c C) a & C D) a & d

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............................... represents the assets backing for equity shares value

• (A) Fair value• (B) Market value • (C) Intrinsic value • (D) Book

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Practice of appending notes regarding contingent liabilities in accounting segment is in pursuance

• A) Convention of Consistency• B) Convention of Conservatism• C) Convention of materialism• D) Convention of Disclosure

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Practice of appending notes regarding contingent liabilities in accounting segment is in pursuance

• A) Convention of Consistency• B) Convention of Conservatism• C) Convention of materialism• D) Convention of Disclosure

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Match the following :• List - I List - II• (a) Matching Principle (i) Ignores future profit estimations• (b) Materiality Principle (ii) Normal basis for valuing assets• (c) Conservatism Principle (iii) Revenues and expenses of a particular

period• (d) Cost Principle (iv) Relates to relative size or importance of

item• or event• Code :• (a) (b) (c) (d)• (A) (i) (iv) (ii) (iii)• (B) (ii) (iii) (iv) (i)• (C) (iii) (iv) (i) (ii)• (D) (iv) (iii) (ii) (i)

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Match the following :• List - I List - II• (a) Matching Principle (i) Ignores future profit estimations• (b) Materiality Principle (ii) Normal basis for valuing assets• (c) Conservatism Principle (iii) Revenues and expenses of a particular

period• (d) Cost Principle (iv) Relates to relative size or importance of

item• or event• Code :• (a) (b) (c) (d)• (A) (i) (iv) (ii) (iii)• (B) (ii) (iii) (iv) (i)• (C) (iii) (iv) (i) (ii)• (D) (iv) (iii) (ii) (i)

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Which of the following is not an Accounting concept ?

(A) Matching concept (B) (B Dual Aspect concept (C) True and Fair concept (D) Going concern concept

 

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Which of the following is not an Accounting concept ?

(A) Matching concept (B) (B Dual Aspect concept (C) True and Fair concept (D) Going concern concept

 

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