CS Executive · June 2026 · Paper 4
CS Executive Corporate Accounting and Financial Management June 2026: 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 |
|---|---|---|---|
| Capital Budgeting | 5 | 25 | 19% |
| Working Capital Management | 4 | 15 | 11% |
| Accounting for Share Capital | 3 | 15 | 11% |
| Financial Statement Analysis | 5 | 10 | 7% |
| Cash Flows | 2 | 10 | 7% |
| Forecasting Financial Statements | 2 | 10 | 7% |
| Accounting Standards | 2 | 10 | 7% |
| Accounting for Debentures | 2 | 9 | 7% |
| Consolidation of Accounts | 1 | 6 | 4% |
| Cost of Capital | 1 | 5 | 4% |
| Capital Structure | 1 | 5 | 4% |
| Dividend Decisions | 1 | 5 | 4% |
| Security Analysis | 1 | 5 | 4% |
| Introduction to Financial 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) | 2 | Deriving sales from gross profit ratio | Financial Statement Analysis |
| 1(b) | 2 | Deriving debtors from the collection period | Financial Statement Analysis |
| 1(c) | 2 | Deriving creditors from the payment period | Financial Statement Analysis |
| 1(d) | 2 | Deriving closing stock from stock velocity | Financial Statement Analysis |
| 1(e) | 2 | Operating cycle analysis from turnover ratios | Working Capital Management |
| 1(f) | 2 | Commentary on liquidity and efficiency of receivables, payables and inventory | Financial Statement Analysis |
| 1(g) | 3 | Management note on working capital strengths, weaknesses and improvements | Working Capital Management |
| 2(a) | 5 | Forfeiture of partly paid shares with unpaid premium and reissue at a discount | Accounting for Share Capital |
| 2(b) | 5 | Debentures issued as purchase consideration and issued at discount redeemable at premium | Accounting for Debentures |
| 2(c) | 5 | Cash flow statement by the indirect method under AS 3 | Cash Flows |
| 3(a) | 5 | Bonus issue, rights issue at premium and debenture redemption with revised balance sheet | Accounting for Share Capital |
| 3(b) | 5 | Projected net income and dividend growth under a sales growth assumption | Forecasting Financial Statements |
| 3(c) | 5 | Underwriters' net liability with marked, unmarked and firm underwriting | Accounting for Share Capital |
| 4(a) | 6 | Consolidated profit, pre-acquisition net worth and minority interest with mid-year acquisition | Consolidation of Accounts |
| 4(b) | 5 | Monthly cash budget to estimate overdraft needs | Working Capital Management |
| 4(c) | 4 | Redemption of convertible debentures partly by conversion into equity | Accounting for Debentures |
| 4A(i) | 5 | Differences between Ind AS 16 and AS 10 on property, plant and equipment | Accounting Standards |
| 4A(ii) | 5 | Components and factors of financial forecasting | Forecasting Financial Statements |
| 4A(iii) | 5 | Need for accounting standards | Accounting Standards |
| 5(a) | 5 | Average accounting rate of return for competing machines | Capital Budgeting |
| 5(b) | 5 | Payback period comparison of competing machines | Capital Budgeting |
| 5(c) | 5 | Equivalent annual NPV for machines with unequal lives | Capital Budgeting |
| 5(d) | 5 | Annual profit after tax and cash flow after tax | Capital Budgeting |
| 6(a) | 5 | Weighted average cost of capital using market value weights | Cost of Capital |
| 6(b) | 5 | Operating and financial leverage across cost situations and financing plans | Capital Structure |
| 6(c) | 5 | Working capital requirement forecast from holding and credit periods | Working Capital Management |
| 6(d) | 5 | Share price under Walter model for different payout ratios | Dividend Decisions |
| 6A(i) | 5 | Role and advantages of cash flow analysis in decision making | Cash Flows |
| 6A(ii) | 5 | Importance of capital budgeting decisions | Capital Budgeting |
| 6A(iii) | 5 | Differences between investment and speculation | Security Analysis |
| 6A(iv) | 5 | Arguments against profit maximisation as a business goal | Introduction to Financial Management |
What stood out
- Capital Budgeting carries the most weight: the Part II case (Q5, 4 parts of 5 marks) plus a theory alternative, 25 marks in all.
- Q2, Q3, Q4 and Q6 are fully computational; theory appears only in the alternatives 4A and 6A (7 parts, 35 marks).
- The Q1 case tests working capital ratios through back-calculation of sales, debtors, creditors and stock, followed by analytical commentary and a management note.
- Share capital accounting is prominent in Part I: forfeiture and reissue, bonus and rights entries, and underwriter liability account for 15 marks.
- Part II financial management parts are spread one per topic: cost of capital, leverage, working capital forecast and the Walter dividend model.
Practise the chapters that carried the marks
Capital Budgeting, Working Capital Management, Accounting for Share Capital: study guides and practice questions in the CS Executive format.