SSC CGL (Combined Graduate Level) General Studies - Finance and Economics (Tier II Paper III) Syllabus

General Studies - Finance and Economics (Tier II Paper III) syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for General Studies - Finance and Economics (Tier II Paper III) in SSC CGL (Combined Graduate Level), not a summary of it.

1. 1

   Fundamental Principles of Accounting

   5 topics

   • Financial Accounting Nature and Scope
   • Basic Accounting Concepts and Conventions
   • Single and Double Entry Systems
     • Journals, ledgers and trial balance
     • Rectification of errors
   • Final Accounts
     • Trading and profit and loss account
     • Balance sheet preparation
   • Bank Reconciliation and Depreciation
2. 2

   Economics and Governance Fundamentals

   5 topics

   • Comptroller and Auditor General of India and Functions
   • Finance Commission Role and Functions
   • Theory of Demand and Supply
     • Demand, elasticity and consumer behaviour
     • Law of supply and equilibrium
   • Theory of Production and Cost
   • Forms of Market and Price Determination
     • Perfect competition
     • Monopoly, oligopoly and monopolistic competition
3. 3

   Indian Economy and Money-Banking

   5 topics

   • National Income Concepts and Measurement
   • Money and Banking
     • Functions of money and RBI
     • Commercial banking and credit creation
   • Indian Economy Sectors
     • Agriculture, industry and services
     • National and per-capita income trends
   • Economic Reforms and Globalisation
     • Liberalisation, privatisation and globalisation
     • Role of foreign trade and investment
   • Role of Information Technology in Governance

General Studies - Finance and Economics (Tier II Paper III) flashcards for SSC CGL (Combined Graduate Level)

18 of 51 cards from the General Studies - Finance and Economics (Tier II Paper III) deck — real questions with worked answers.

1. Define financial accounting and state its primary objective.

   Financial accounting is the systematic process of recording, classifying, summarizing, analyzing, and reporting an entity's financial transactions. Its primary objective is to ascertain the profit/loss and the financial position (assets and liabilities) of a business and communicate it to users via financial statements.

2. What is the scope of financial accounting (its main functions)?

   Recording (journalizing), classifying (ledger posting), summarizing (trial balance and final accounts), and communicating financial information to interested parties such as owners, creditors, investors, and government.

3. Differentiate between Book-keeping and Accounting.

   Book-keeping is the routine recording and classifying of financial transactions (clerical, primary stage). Accounting is broader, including summarizing, analyzing, interpreting, and communicating results; it begins where book-keeping ends.

4. What is the Accounting Equation?

   Assets = Liabilities + Capital (Owner's Equity). Every transaction keeps this equation in balance, which is the basis of the double entry system.

5. State the Money Measurement Concept.

   Only those transactions and events that can be expressed in monetary terms are recorded in accounting. Non-monetary facts (e.g., employee skill, management quality) are not recorded.

6. State the Business Entity (Separate Entity) Concept.

   The business is treated as a separate and distinct unit from its owner(s). The owner's personal transactions are kept separate, and capital introduced is treated as a liability of the business toward the owner.

7. State the Going Concern Concept.

   It assumes the business will continue to operate for the foreseeable future and has no intention or necessity to liquidate. This justifies recording assets at cost and charging depreciation over their useful life.

8. State the Cost (Historical Cost) Concept.

   Assets are recorded in the books at their acquisition (purchase) cost, not at market value. This recorded cost becomes the basis for subsequent depreciation.

9. State the Dual Aspect Concept.

   Every transaction has two aspects, a debit and an equal credit. This is the foundation of double entry book-keeping, expressed as Assets = Liabilities + Capital.

10. State the Accounting Period (Periodicity) Concept.

    The indefinite life of a business is divided into smaller, equal time periods (usually one year) for which financial statements are prepared to measure performance and position.

11. State the Matching Concept.

    Expenses incurred in an accounting period should be matched with the revenues recognized in that same period to correctly determine profit or loss.

12. State the Realisation (Revenue Recognition) Concept.

    Revenue is recognized/recorded when it is earned or realized, i.e., when goods are sold or services are rendered, not when cash is received.

13. What is the Convention of Conservatism (Prudence)?

    Anticipate no profit but provide for all possible losses. Income should not be overstated and losses/expenses should not be understated, e.g., creating provision for doubtful debts and valuing stock at lower of cost or market price.

14. What is the Convention of Consistency?

    Accounting policies and methods (e.g., depreciation method) should be applied uniformly from one period to the next so that financial statements remain comparable over time.

15. What is the Convention of Full Disclosure?

    All material and relevant financial information should be fully and fairly disclosed in the financial statements so that users can make informed decisions.

16. What is the Convention of Materiality?

    Only items significant enough to influence the decisions of users need to be recorded/disclosed in detail; insignificant (immaterial) items may be merged or ignored.

17. Differentiate between the Single Entry System and the Double Entry System.

    Single entry is an incomplete system recording only one aspect (mostly cash and personal accounts), unsuitable for trial balance. Double entry records both debit and credit aspects of every transaction, enabling a trial balance, accurate profit, and a balance sheet.

18. State the rule of debit and credit for Personal accounts.

    Debit the receiver, Credit the giver.

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