100+ Free CS Executive CAFM Practice Questions
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Key Facts: CS Executive CAFM Exam
100
Total Marks
ICSI New Syllabus 2022
60 / 40
Part A / Part B Marks
ICSI Study Material
100%
Descriptive Paper
ICSI Exam Pattern
3 hrs
Exam Duration
ICSI Examination
40% / 50%
Paper / Aggregate Pass
ICSI Rules
Paper 4
Executive Group 1
ICSI Executive Programme
CS Executive Paper 4 Corporate Accounting and Financial Management (CAFM) is a 100-mark, 3-hour ICSI paper under the New Syllabus 2022. Part A Corporate Accounting carries 60 marks (accounting standards/Ind AS, share capital, debentures, bonus and rights, redemption of preference shares, Schedule III statements, consolidation, cash flow statements) and Part B Financial Management carries 40 marks (capital budgeting, cost of capital, capital structure and leverage, working capital, dividend decisions, sources of finance, time value of money, security analysis). Uniquely among Executive papers, CAFM is 100% descriptive with no objective/MCQ component. Pass requires at least 40% in the paper and 50% module aggregate.
Sample CS Executive CAFM Practice Questions
Try these sample questions to test your CS Executive CAFM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Under the ICSI CS Executive (2022 syllabus) Paper 4, Indian Accounting Standards (Ind AS) are converged with which set of global standards?
2Ind AS 1 deals with which of the following?
3Under AS 2 / Ind AS 2, inventories are valued at:
4The financial statements of companies in India must be prepared in the format prescribed by which schedule of the Companies Act, 2013?
5As per the Companies Act, 2013, shares can be issued at a discount only in which case?
6Securities premium received on issue of shares must be transferred to which account, the application of which is restricted by Section 52 of the Companies Act, 2013?
7A company forfeits 1,000 shares of Rs.10 each on which Rs.7 has been called and Rs.5 received. The amount transferred to the Share Forfeited Account on forfeiture is:
8Bonus shares can be issued by a company out of which of the following?
9In a rights issue, the value of a right per share, given cum-right market price M, issue price S, and ratio of n existing shares for every m new shares, is conceptually equal to:
10When preference shares are redeemed out of profits otherwise available for dividend, an amount equal to the nominal value redeemed must be transferred to which account?
About the CS Executive CAFM Exam
CS Executive Paper 4 (Corporate Accounting and Financial Management) under the ICSI New Syllabus 2022 is a 100-mark, 3-hour paper split into Part A Corporate Accounting (60 marks) and Part B Financial Management (40 marks). It is the only Executive Programme paper that is entirely descriptive, with no objective component.
Assessment
Question count not published by the exam provider
Time Limit
3 hours (180 minutes)
Passing Score
Minimum 40% in the paper and 50% module aggregate
Exam Fee
Covered within ICSI Executive Programme registration and per-module examination fees; no separate paper fee is published (Institute of Company Secretaries of India (ICSI))
CS Executive CAFM Exam Content Outline
Part A: Corporate Accounting
Accounting standards and Ind AS overview, accounting for share capital, debentures, bonus and rights issues, redemption of preference shares, Schedule III company financial statements, consolidation basics, and cash flow statements.
Accounting Standards and Ind AS Overview
Conceptual framework, applicability of AS and Ind AS converged with IFRS, key standards such as Ind AS 1, 2, 7, 12, 16 and 115, and qualitative characteristics of financial information.
Accounting for Share Capital, Debentures, Bonus and Rights
Issue, forfeiture and reissue of shares, securities premium under Section 52, bonus shares under Section 63, rights issue and value of right, sweat equity, buy-back, and issue and redemption of debentures.
Redemption of Preference Shares
Section 55 conditions, Capital Redemption Reserve creation, premium on redemption, and funding redemption through fresh issue or distributable profits.
Company Financial Statements (Schedule III)
Balance Sheet and Statement of Profit and Loss formats, current versus non-current classification, MSME disclosure, corporate financial reporting, and forecasting financial statements.
Consolidation and Cash Flow Statements
Consolidation basics, goodwill and capital reserve, non-controlling interest, pre and post-acquisition profits, unrealised profit elimination, and AS 3/Ind AS 7 cash flow statements.
Part B: Financial Management
Introduction to financial management, time value of money, capital budgeting, cost of capital, capital structure and leverage, working capital management, dividend decisions, sources of finance, and security analysis.
Capital Budgeting and Cost of Capital
NPV, IRR, payback, profitability index, time value of money, and cost of debt, equity, preference and weighted average cost of capital (WACC).
Capital Structure, Leverage and Dividend Decisions
Operating, financial and combined leverage, Net Income and MM approaches, Walter and MM dividend models, and dividend policy types.
Working Capital, Sources of Finance and Security Analysis
Working capital estimation and operating cycle, EOQ and receivables/cash management, long and short-term sources, lease, venture capital, ADR/GDR, bond valuation, CAPM and diversification.
How to Pass the CS Executive CAFM Exam
What You Need to Know
- Passing score: Minimum 40% in the paper and 50% module aggregate
- Assessment: Question count not published by the exam provider
- Time limit: 3 hours (180 minutes)
- Exam fee: Covered within ICSI Executive Programme registration and per-module examination fees; no separate paper fee is published
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
CS Executive CAFM Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the CS Executive Paper 4 (CAFM) exam?
The actual ICSI exam does not have a fixed number of objective questions because Paper 4 Corporate Accounting and Financial Management is entirely descriptive. It is a 100-mark paper, and candidates answer descriptive and numerical problems within 3 hours.
Is CS Executive Paper 4 objective or descriptive?
Under the ICSI New Syllabus 2022, most Executive papers are 20% objective and 80% descriptive, but Paper 4 (Corporate Accounting and Financial Management) is a notable exception: it is 100% descriptive with no objective component.
What is the marks split between Part A and Part B in CAFM?
Paper 4 is divided into Part A Corporate Accounting carrying 60 marks and Part B Financial Management carrying 40 marks, for a total of 100 marks in a 3-hour examination.
What is the passing requirement for CS Executive Paper 4?
A candidate must secure at least 40% marks in the individual paper and an aggregate of 50% across the module to pass, as per ICSI examination rules.
What topics are covered in Part B Financial Management of CAFM?
Part B covers introduction to financial management, time value of money, capital budgeting, cost of capital, capital structure and leverage, working capital management, dividend decisions, sources of finance, and security analysis.
Which accounting standards are tested in CS Executive Paper 4?
Part A covers an overview of Accounting Standards (AS) and Indian Accounting Standards (Ind AS), which are converged with IFRS, including standards on presentation, inventories, cash flows, income taxes, property, plant and equipment, and revenue recognition.
How should I prepare for the fully descriptive CAFM paper?
Because the paper is descriptive and numerical, practise working full accounting entries and financial management computations by hand. Use these MCQ-style questions to lock in concepts, then solve past ICSI descriptive papers under timed conditions.
Who conducts the CS Executive Paper 4 exam?
The Institute of Company Secretaries of India (ICSI) conducts the CS Executive Programme examinations, including Paper 4 Corporate Accounting and Financial Management, as offline centre-based examinations.