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 |
Introduction to accounting
Double entry book keeping
Accruals and prepayments
Limited Company accounts
Statements of cash flow
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 questions
Multiple choice A / B / C / D
10 X 1 mark questions
Multiple choice A / B or A / B / C
40 x 2 mark questions
Questions can be multiple choice, multiple response, matching or number entry
10 x 1 mark questions
Multiple response (correctly identify two from three right answers)
The pass mark is 50%
INTRODUCTION 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...
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