The following notes are suitable for both the international and UK streams. There will some terminology differences between the two streams. These are summarised below:
|International |UK | |Statement of comprehensive income |Profit and loss account | |Statement of financial position |Balance sheet | |Non-current assets |Fixed assets | |Inventory |Stock | |Trade receivables |Debtors | |Non-current liabilities |Long term liabilities | |Trade payables |Creditors | |Irrecoverable debts |Bad debts |
Session 1Introduction to accounting
Session 2Financial statements
Session 3Double entry book keeping
Session 4Non-current assets
Session 6Irrecoverable Debts
Session 7Control Accounts
Session 8Bank Reconciliations
Session 9Accruals and prepayments
Session 10Limited Company accounts
Session 11Statements of cash flow
Session 12Incomplete records
The aim of this paper is to develop knowledge and understanding of the underlying principles and concepts relating to financial accounting and technical proficiency in the use of double-entry accounting techniques including the preparation of basic financial statements.
On completion of this paper, you should be able to:
Explain the context and purpose of financial reporting
Define the qualitative characteristics of financial information and the fundamental bases of accounting
Demonstrate the use of double-entry and accounting systems
Record transactions and events
Prepare a trial balance (including identifying and correcting errors)
Prepare basic financial statements for incorporated and unincorporated entities
The exam can be sat either written or computer based, both methods are 2 hours long.
40 x 2 mark questionsMultiple choice A / B / C / D
10 X 1 mark questionsMultiple choice A / B or A / B / C
40 x 2 mark questionsQuestions can be multiple choice, multiple response, matching or number entry
10 x 1 mark questionsMultiple response (correctly identify two from three right answers)
The pass mark is 50%
SESSION 1INTRODUCTION TO ACCOUNTING
• Understand the purpose of accounting
• Identify the different types of businesses
• Indentify the users of accounts
• Explain the qualitative characteristics of financial statements
• Understand the underlying assumptions of financial statements
WHAT IS ACCOUNTING?
Accounting is made up of two elements:
I. Recording business transactions - Book keeping
II. Presenting the information
WHAT IS A BUSINESS?
A business is a commercial organisation which exists with a view to making a profit. There are different types of businesses which will fall into...