CS Executive · June 2025 · Paper 4
CS Executive Corporate Accounting and Financial Management June 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
| Chapter | Questions | Marks | Share |
|---|---|---|---|
| Financial Statement Analysis | 5 | 23 | 17% |
| Capital Budgeting | 3 | 20 | 15% |
| Accounting for Share Capital | 3 | 17 | 13% |
| Cash Flows | 2 | 12 | 9% |
| Forecasting Financial Statements | 2 | 10 | 7% |
| Dividend Decisions | 2 | 10 | 7% |
| Capital Structure | 2 | 10 | 7% |
| Accounting for Debentures | 2 | 8 | 6% |
| Consolidation of Accounts | 1 | 5 | 4% |
| Related Aspects of Company Accounts | 1 | 5 | 4% |
| Time Value of Money | 1 | 5 | 4% |
| Security Analysis | 1 | 5 | 4% |
| Working Capital Management | 1 | 5 | 4% |
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 7 | Cash flow statement by the indirect method with asset sale, mortgage-financed purchase, dividend and tax provision | Cash Flows |
| 1(b) | 3 | Return on equity and return on assets from a balance sheet | Financial Statement Analysis |
| 1(c) | 5 | Profit projections for a new venture under alternative scenarios | Forecasting Financial Statements |
| 2(a) | 7 | Journal entries for an employee stock option plan with lapses, exercise and expiry | Accounting for Share Capital |
| 2(b) | 3 | Debentures issued as purchase consideration for assets acquired | Accounting for Debentures |
| 2(c) | 5 | Conversion of part of convertible debentures into equity: number of shares to allot | Accounting for Debentures |
| 3(a) | 5 | Cost of control before and after a subsidiary bonus issue out of post-acquisition profits | Consolidation of Accounts |
| 3(b) | 5 | Underwriters liability with firm underwriting where benefit is not given to individual underwriters | Accounting for Share Capital |
| 3(c) | 5 | Trade receivables turnover ratio and average collection period | Financial Statement Analysis |
| 4(a) | 5 | Journal entries for acquiring a patent partly by cash and partly by shares issued at a discount | Accounting for Share Capital |
| 4(b) | 5 | Comparing return on equity of two firms and explaining the driver of the difference | Financial Statement Analysis |
| 4(c) | 5 | Material consumed and cash paid for inventory from opening and closing balances | Cash Flows |
| 4A(i) | 5 | Financial forecasting as the starting point of the budgeting process | Forecasting Financial Statements |
| 4A(ii) | 5 | Role of the escrow account in a buyback of shares | Related Aspects of Company Accounts |
| 4A(iii) | 5 | Significance of the debt service coverage ratio | Financial Statement Analysis |
| 5(i) | 7 | NPV of a project at a risk-adjusted discount rate and accept or reject decision | Capital Budgeting |
| 5(ii) | 7 | Payback, post-payback profitability index and discounted payback period | Capital Budgeting |
| 5(iii) | 6 | NPV using the certainty equivalent approach | Capital Budgeting |
| 6(a) | 5 | Modigliani-Miller dividend irrelevance: new shares needed and value of the firm | Dividend Decisions |
| 6(b) | 5 | EBIT indifference point between all-equity and debt-equity financing | Capital Structure |
| 6(c) | 5 | Future value of an ordinary annuity and an annuity due | Time Value of Money |
| 6(d) | 5 | Relative strength index from a series of closing prices | Security Analysis |
| 6A(i) | 5 | Common size financial statements | Financial Statement Analysis |
| 6A(ii) | 5 | Rationale for a stable dividend policy | Dividend Decisions |
| 6A(iii) | 5 | How financial leverage can raise earnings per share | Capital Structure |
| 6A(iv) | 5 | Safety stock in inventory and working capital management | Working Capital Management |
What stood out
- The paper is computation-heavy: 19 of the 26 listed parts require numerical working, and theory is confined to the optional Q4A and Q6A alternatives.
- Capital budgeting alone carries the 20-mark Part II case (Q5), covering risk-adjusted NPV, payback variants and certainty equivalents.
- Financial Statement Analysis is the most frequent chapter with 5 listed parts (ROE, ROA, receivables turnover, DSCR, common size statements).
- Corporate accounting coverage in Part I spans ESOP accounting, debentures, underwriting, consolidation after a bonus issue and shares issued at a discount for an asset.
- Several data tables did not survive text extraction, so topics are described at concept level only.
Practise the chapters that carried the marks
Financial Statement Analysis, Capital Budgeting, Accounting for Share Capital: study guides and practice questions in the CS Executive format.