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🇮🇳 UGC NET Commerce · flashcards
UGC NET Commerce Accounting and Auditing Flashcards
60 question-and-answer cards covering Accounting and Auditing as it is examined in UGC NET Commerce. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Accounting and Auditing deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is life cycle costing?
A technique that accumulates and analyses all costs of a product over its entire life cycle - from R&D and design through production, marketing, use and disposal - to assess total profitability and aid pricing.
What is target costing and how is target cost derived?
Target costing sets cost based on the market: Target Cost = Target Selling Price - Desired Profit Margin. The firm then designs the product to be produced within that cost.
What is Kaizen costing and how does it differ from standard costing?
Kaizen costing focuses on continuous, incremental cost reduction during the manufacturing stage. Unlike standard costing (which seeks to meet a static standard), Kaizen continually lowers the target to reduce costs over time.
What is JIT (Just-in-Time) and its main objective?
JIT is an inventory/production system in which materials and components are produced or procured only as needed, minimising inventory. Objective: eliminate waste, reduce holding costs, and achieve smooth, demand-pull production.
What are the broad categories of accounting ratios in ratio analysis?
Liquidity ratios, solvency/leverage ratios, activity/turnover ratios, and profitability ratios (some also classify a separate group of market/valuation ratios).
State the formulas for current ratio and quick (acid-test) ratio.
Current Ratio = Current Assets / Current Liabilities. Quick Ratio = (Current Assets - Inventory - Prepaid Expenses) / Current Liabilities.
What does the debt-equity ratio measure and what is its formula?
It measures the relative proportion of borrowed funds to owners' funds (financial leverage/solvency). Debt-Equity Ratio = Long-term Debt / Shareholders' Funds (Equity).
What is funds flow analysis based on, and what does 'funds' usually mean?
It analyses the movement of funds (changes in working capital) between two balance sheet dates. 'Funds' here generally means net working capital (current assets minus current liabilities).
What is the purpose of a Funds Flow Statement?
To show the sources and applications of funds during a period, explaining changes in working capital and how long-term funds were raised and used, helping assess financial soundness and financing decisions.
Under AS 3, what are the three activities classified in a Cash Flow Statement?
Operating activities, investing activities, and financing activities.
Distinguish between funds flow and cash flow analysis.
Funds flow is based on the working capital concept and covers wider 'funds'; cash flow is based strictly on cash and cash equivalents. Cash flow is more useful for short-term liquidity; funds flow for medium/long-term financial planning.
What is an independent financial audit and its primary objective?
An independent examination of the financial statements of an entity by a qualified auditor to express an opinion on whether they give a true and fair view in accordance with the applicable financial reporting framework.
Distinguish between vouching and verification.
Vouching is examining documentary evidence (vouchers) to confirm the authenticity and accuracy of recorded transactions. Verification confirms the existence, ownership, valuation and presentation of assets and liabilities at the balance sheet date.
What is the difference between verification and valuation of assets?
Verification confirms existence, ownership, and possession of an asset. Valuation ensures the asset is shown in the books at an appropriate value (e.g., cost less depreciation) per applicable accounting principles.
What are the main types of audit opinion in an audit report?
Unmodified (unqualified/clean) opinion; and modified opinions: qualified opinion, adverse opinion, and disclaimer of opinion.
When does an auditor issue a 'disclaimer of opinion'?
When the auditor is unable to obtain sufficient appropriate audit evidence and the possible effects of undetected misstatements could be both material and pervasive, so no opinion can be expressed.
What is cost audit and one of its main objectives?
Cost audit is the verification of cost records and accounts and a check on adherence to the prescribed cost accounting plan. Objective: ensure cost accounts are accurate and detect inefficiencies/errors in costing.
What is management audit?
A comprehensive, critical review of the overall performance and effectiveness of an organisation's management functions and policies, aimed at improving managerial efficiency and effectiveness rather than verifying financial accounts.
What is an energy audit?
A systematic examination of energy use in an organisation to identify where and how energy is consumed, detect wastage, and recommend measures to improve energy efficiency and reduce energy costs.
What is an environment audit?
A systematic evaluation of an organisation's operations and processes to assess compliance with environmental laws and standards and to measure and improve its environmental performance and impact.
What is a systems audit?
An audit that examines the design and operating effectiveness of an organisation's information/management systems and internal controls (often IT/computer systems) to ensure reliability, security, and accuracy of data processing.
What is a safety audit?
A structured, systematic assessment of workplace safety systems, hazards, and compliance with safety standards/regulations, aimed at identifying risks and improving occupational health and safety.
What is the accounting (matching) concept and why is it important?
The matching concept requires expenses to be recognised in the same period as the revenues they help generate, ensuring profit for a period is correctly measured. It underlies accrual accounting.
State the contribution formula and its role in marginal costing.
Contribution = Sales - Variable Cost (= Fixed Cost + Profit). It measures the amount available to cover fixed costs and profit, and is the key tool in marginal costing for decision-making and break-even analysis.
What this deck covers
The Accounting and Auditing deck follows the UGC NET Commerce Accounting and Auditing syllabus — 12 chapters and 37 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 5.0 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 195 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Accounting and Auditing flashcards FAQ
How many Accounting and Auditing flashcards are in this UGC NET Commerce deck?
60 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these UGC NET Commerce flashcards free?
Yes. The preview here is free to read with no signup, and the full 60-card deck is free inside the Examius app.
What do the Accounting and Auditing cards cover?
They follow the UGC NET Commerce Accounting and Auditing syllabus — 12 chapters and 37 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.