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Subject: CPT EXAM
Date: 26-Aug-2008
Question: how can i prepare the CPT exam ?
Answer: For Common Proficiency Test (CPT) you have to prepare the following subjects and topics:

You need to develop conceptual understanding of the fundamentals of financial accounting system.
(i) Meaning and Scope of accounting
(ii) Accounting Concepts, Principles and Conventions
(iii) Accounting Standards – concepts, objectives, benefits
(iv) Accounting Policies
(v) Accounting as a measurement discipline – valuation principles, accounting estimates You need to study books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof. Bank Reconciliation Statement Inventories including basis of inventory valuation and record keeping. Depreciation accounting including methods, computation and accounting treatment of depreciation, Change in depreciation methods.

Preparation of Final Accounts for Sole Proprietors

Accounting for Special Transactions including Consignments
Joint Ventures
Bills of exchange and promissory notes
Sale of goods on approval or return basis.

Partnership Accounts including final accounts of partnership firms – Basic concepts of admission, retirement and death of a partner including treatment of goodwill.

Introduction to Company Accounts
Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares.

Under the mercantile law you need to prepare:
1. The Indian Contract Act , 1872: An overview of Sections 1 to 75 covering the general nature of contract , consideration , other essential elements of a valid contract , performance of contract and breach of contract.

2. The Sale of Goods Act, 1930: Formation of the contract of sale – Conditions and Warranties – Transfer of ownership and delivery of goods – Unpaid seller and his rights.

3. The India Partnership Act, 1932: General Nature of Partnership – Rights and duties of partners – Registration and dissolution of a firm.

You should have basic understanding of economic systems, economic behaviour of individuals and organizations and need to prepare various topics in Micro Economics like:

1. Introduction to Micro Economics Definition, scope and nature of Economics Methods of economic study Central problems of an economy and Production possibilities curve.

2. Theory of Demand and Supply Meaning and determinants of demand, Law of demand and Elasticity of demand - Price, income and cross elasticity Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach Meaning and determinants of supply, Law of supply and Elasticity of supply.

3. Theory of Production and Cost Meaning and Factors of production Laws of Production – The Law of variable proportions and Laws of returns to scale Concepts of Costs - Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

4. Price Determination in Different Markets Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly Price determination in these markets. Then you need to know Indian Economy, profile and its nature along with the following topics: Role of different sectors – Agriculture, Industry and Services in the development of the Indian economy, their problems and growth National Income of India – Concepts of national income, Different methods of measuring national income, Growth of national income and per capita income in various plans.

Basic understanding of tax system of India – Direct and Indirect Taxation

6. Select Aspects of Indian Economy Population – Its size, rate of growth and its implication for growth

Poverty – Absolute and relative poverty and main programs for poverty alleviation
Unemployment – Types, causes and incidence of unemployment
Infrastructure - Energy, Transportation, Communication, Health and Education Inflation
Budget and Fiscal deficits
Balance of payments
External debts

7. Economic Reforms in India Features of economic reforms since 1991 Liberalisation, Privatisation and Disinvestment Globalisation

8. Money and Banking
Money – Meaning and functions
Commercial Banks – Role and functions
Reserve Bank of India – Role and functions, Monetary policy.

You need to practise the following also:
1. Ratio and proportion, Indices, Logarithms
2. Equations: Linear – simultaneous linear equations up to three variables, quadratic and cubic equations in one variable, equations of a straight line, intersection of straight lines, graphical solution to linear equations.
3. Inequalities: Graphs of inequalities in two variables - common region.
4. Simple and Compound Interest including annuity - Applications
5. Basic concepts of Permutations and Combinations
6. Sequence and Series – Arithmetic and geometric progressions
7. Sets, Functions and Relations
8. Limits and Continuity - Intuitive Approach
9. Basic concepts of Differential and Integral Calculus (excluding trigonometric functions)
10. Statistical description of data Textual, Tabular & Diagrammatic representation of data.
Frequency Distribution.
Graphical representation of frequency distribution – Histogram, Frequency Polygon, Ogive
11. Measures of Central Tendency and Dispersion Arithmetic Mean, Median – Partition Values, Mode, Geometric Mean and Harmonic, Mean, Standard deviation, Quartile deviation
12. Correlation and Regression
13. Probability and Expected Value by Mathematical Expectation
14. Theoretical Distributions Binomial, Poisson and Normal.
15. Sampling Theory: Basic Principles of sampling theory, Comparison between sample survey and complete enumeration, Errors in sample survey, Some important terms associated with sampling, Types of sampling, Theory of estimation, Determination of sample size.
16. Index Numbers

All the best
CareerAge Counselor