Financial record keeping

Size: px
Start display at page:

Download "Financial record keeping"

Transcription

1 Financial record keeping 01 Introduction All businesses and many other types of organization will need to keep records of any financial transactions that take place. However, it makes sense to introduce some accounting terminology before we look at any system of recording financial transactions. We will begin by explaining some of the frequently used terms whose meaning may not be immediately obvious. These terms are assets, liabilities and capital : Assets are resources that are used within the business. These can take the form of physical resources used to facilitate production, such as premises and equipment. Assets can also include resources which are used as a part of the production process, such as materials that are going to be converted into goods, the cash used to purchase more assets and the outstanding amounts owed to the business by its customers. Liabilities are debts of the business that are outstanding. These are any borrowings which the business will repay at some point in the future. These can be short-term debts which are to be repaid in the next few days, such as an expense which has yet to be paid, but can also be long-term debts not to be repaid until many years in the future, such as a mortgage. Capital refers to the value of the owner s resources placed within the business. This can take the form of money invested in the business but can also take the form of owner s assets brought into business use, such as the owner s vehicle. The withdrawal of capital from the business by the owner is known as drawings. The capital, along with the liabilities of the business, enables the business to acquire assets which can be used as part of the business operations. This leads us to the accounting equation, which can be simply stated as follows: Assets = Capital + Liabilities

2 2 Accounting for Non-Accountants This equation must always hold true. To explain why the equation always holds, we must consider what the equation is telling us that the resources in use within the business must have been financed either from the owner s resources or by borrowing resources. Once the business has become established and if the business is profitable, we can modify the equation to allow assets to be financed out of the profits of the business in addition to the capital and liabilities. The process of recording and maintaining records of financial transactions is known as bookkeeping. However, there are two types of bookkeeping that are commonly practised by business organizations single-entry and double-entry bookkeeping. Single-entry bookkeeping Very small businesses (usually one-person organizations known as sole traders) and other types of organization such as charities, clubs and other small not-for-profit organizations may keep their financial records through a process of single-entry bookkeeping where each transaction is recorded as one single entry. This is bookkeeping at it simplest and often can be as basic as the maintenance of only a receipts and payments account. An example of a receipts and payments account is shown in Figure 1.1. Figure 1.1 Receipts and payments account 2013 Receipts 2013 Payments 1 Feb Capital 1,000 4 Feb Purchases Feb Sales Feb Electricity Feb Loan: R Day Feb Purchases Feb Sales Feb Balance c/d 1,831 2,345 2,345 1 Mar Balance b/d 1,831 This account shows all the monies received by the business and all the monies paid out by the business. The balance left over at the end of the month represents the current amount of money still left in the business bank account. The receipts and payments account is more commonly known as a cashbook. The cashbook will record all transactions involving money either being received or being spent either in the form of cash or as money taken from or paid into the firm s bank account. If a firm maintains a receipts and payments account as its main financial record it will still need to keep records and details of the types of payment and types of receipt in each transaction. This will enable a firm to calculate

3 Financial Record Keeping 3 the level of profit or loss generated. However, these extra details will often be kept in a memorandum form meaning that they are not part of the firm s accounting system, but are there as financial records to provide information only. A more detailed variation on the cashbook can be used if managers want to monitor and control the type of expenses paid out by the firm more closely. A multi-column approach to the cashbook would be well suited to a business that wanted to keep records that show the effect of VAT (Value Added Tax) separately from its overall purchases and sales. An example of a multi-column cashbook appears in Figure 1.2. Figure 1.2 Multi-column cashbook Receipts Payments 2014 Details Bank Sales VAT 2014 Details Bank Purchases VAT Other expenses 1 Apr Balance b/d Apr Insurance Apr E Mahoney Apr P Beard Apr F Tindall 6 8 Apr K Sutton Apr Wages In Figure 1.2 the analysed columns enable a firm to keep records for VAT, which is necessary once firms reach a certain size (as measured by their sales turnover). Problems with single-entry bookkeeping Although popular with very small organizations, there are a number of limitations in relying on single-entry bookkeeping as a method of keeping financial records. 1 In the receipts and payments account, expenditure will appear but this does not allow the separation of expenditure on day-to-day running expenses and expenditure on assets. This is an important distinction for when a firm wants to calculate the level of profit for the period, assets would not normally be deducted as expenses. 2 Double-entry bookkeeping has a number of built-in checks, which means it is easier to spot mistakes with double-entry accounting (though mistakes still occur). Single-entry bookkeeping has no self-checking mechanism. 3 Attempting to control expenditure will require detailed records of where a business spends money. This is not easy unless there are separate records (ie individual accounts) maintained for each type of

4 4 Accounting for Non-Accountants expense. This limitation can be minimized through the use of a multi-column cashbook. 4 Lack of full accounting records will make theft from the business by business employees more likely. Obviously a one-person organization will not face this problem. Double-entry bookkeeping Once a business begins to grow beyond a certain size and certainly once the maintenance of financial records moves beyond the very straightforward, it will make sense for the financial transactions of the business to be recorded using the double-entry system of bookkeeping. It is widely believed that the system of double-entry bookkeeping was developed and formally set out by Luca Pacioli in the late 15th century. The term double-entry arises out of the fact that each and every financial transaction will require two entries. These are known as a debit entry and a credit entry and each will be recorded in a separate account. The account in which the transaction is recorded will depend on the nature of the transaction. An example of how a double-entry account would appear is shown in Figure 1.3. F i g u r e 1.3 Example of double-entry account presentation Account name Debit side (Dr) Credit side (Cr) Date Account details Amount ( ) Date Account details Amount ( ) Given the T -shaped appearance of the accounts they are often referred to as T accounts. Accounts will be opened and an entry made in the account for each different type of transaction that the business undertakes. This means that there will be separate accounts for each type of asset, each type of expense and each type of income. In addition there will be separate accounts opened for every individual credit supplier and credit customer of the business. All the transactions between the business and the owner will also be recorded in either a capital account or a drawings account, depending on whether the owner is adding resources to or withdrawing resources from the business. There are different rules to be applied when making entries on the bookkeeping system to tell us which side of the account a transaction is to

5 Financial Record Keeping 5 be. Many of the basic transactions would involve the rules for double-entry bookkeeping illustrated in Figure 1.4. FIgurE 1.4 Rules used in double-entry bookkeeping All asset accounts All liability accounts All capital accounts Debit Credit Debit Credit Debit Credit Increases Decreases Decreases Increases Decreases Increases All expense accounts All income accounts Debit Credit Debit Credit Increases Decreases Decreases Increases These rules will make more sense if we see some examples of them in action. Example 1.1 On 3 June 2013, the owner of the business places 2,000 of her own money into the bank account of the new business. Bank Jun Capital 2,000 Capital Jun Bank 2,000 Explanation Here the asset of bank is increasing, which requires a debit entry, and the capital of the business (resources from the owner) is also increasing, which requires a credit entry. Notice how each account in effect cross-references the account containing the other entry for the double-entry transaction. This facilitates the ability to check that the system of bookkeeping is being correctly maintained.

6 INDEX NB: page numbers in italic indicate figures or tables absorption costing allocation of direct costs 117 apportionment and reapportionment of overheads , 118 global overhead recovery multi-department overhead recovery 116 overabsorption overhead absorption rate (OAR) problems with underabsorption vs marginal costing accounting concepts accruals 51 55, 75 consistency going concern 74 historical costs 78 materiality 76 money measurement objectivity prudence 74 realization 77 recognition 77 review questions separate entity 76 see also accounting standards accounting rate of return (ARR) accounting ratios see ratio analysis accounting software 14 accounting standards 78 79, Accounting Standards Board (ASB) Financial Reporting Council 294, 294 Financial Reporting Standard for Smaller Entities (FRSSE) Financial Reporting Standards (FRSs) 79, 295, 303 draft FRS for micro-entities future options for Generally Accepted Accounting Principles (GAAP) 78 79, , 295, future of International Accounting Standards (IASs) 79, IAS , 269, 276, 278, 281, 283 IAS IAS 7 284, 315 IAS IAS IAS IAS IAS IAS , 271 IAS International Accounting Standards Board (IASB) 73, 79, 294, Conceptual Framework 73, International Financial Reporting Standards (IFRS) Foundation 295, 296 International Financial Reporting Standards (IFRSs) 79, 296, 308 IFRS review questions 311 Statements of Recommended Practice (SORPs) 295 Statements of Standard Accounting Practice (SSAPs) 79, 295, 303, 310 Urgent Issues Task Force (UITF) 294, 295 Accounting Standards Board (ASB) accruals (accounting concept) 51 55, 75 acid test ratio activity-based costing (ABC) , 130 aged debtors schedule amortization 272 annual return auditor s report contents overview directors report International Accounting Standard (IAS) 1 267

7 366 Index notes to the financial statements review questions statement of cash flows 284 statement of changes in equity statement of comprehensive income statement of financial position worked example asset turnover (ratio) assets 1, bank balance 37 cash balance 37 current assets depreciation 55 60, 75 asset disposal and the balance sheet cost of asset 56 depreciation method expected useful life 56 residual value 56 intangible assets 34, 35, 77, 269, inventory 36 investments 35 non-current assets 34 outstanding balances 37 short-term investments 37 tangible assets 34 trade receivables 36 auditor s report average cost method (AVCO) 274 bad debts balance b/d 8 balance c/d 8 balance sheet 33 49, 42 adjustments to accruals concept 51 55, 55 bad debts depreciation discounts 61, 62 doubtful debts 61 prepayments 52 53, 55 review questions assets bank balance 37 cash balance 37 current assets depreciation 55 60, 75 intangible assets 35 inventory 36 investments 35 non-current assets 34 outstanding balances 37 short-term investments 37 tangible assets 34 trade receivables 36 capital in a limited company format of horizontal format 40 vertical format 40, 41 see liabilities review questions Bannerman ruling 266 batch costing BDO International 266 bonus issue bookkeeping 8 11 balancing accounts 8, 8 11 trial balance 11 12, 12 worked example 9 11 daybooks double-entry bookkeeping 3, 4, 4 8 accounting software 14 examples 5 8 rules of 4 5, 5 three-column accounts 14, 14 ledgers 13 review questions single-entry bookkeeping 2 4 multi-column cashbook 3, 3 problems with 3 4 receipts and payments account 2, 2 terminology 1 assets 1 capital 1 liabilities 1 books of prime entry 13 break-even analysis break-even chart , 141 break-even output level limitations of margin of safety total costs 140, 140 total revenue 139, 139 budgeting cash budget example budget incremental budgeting master budget 187, 192 materials budget 187 production budgets 187, review questions sales budget 187 uses of budgets control 186 coordination 186 forecasting

8 Index 367 motivation planning 185 zero-based budgeting buffer level (inventory) 192, 215 capital 1, in a limited company capital investment appraisal accounting rate of return (ARR) considerations capital budgets 239 economic climate 239 costs and benefits 224 definition of capital investment discounted cash flow compound interest 231 discount factors 232, 232 weighted average cost of capital (WACC) discounted payback 238 internal rate of return (IRR) , 237 net cash flows net present value (NPV) payback review questions sunk costs 224 cashbook 2 3, cash budget cash discounts 61, cash flow from financing activities 319 cash flow from investing activities cash flow from operating activities direct method 316 indirect method interest and dividends 318 cash sales 220 Companies Act consistency (accounting concept) continuous operation costing , 124, process costing service costing 128 contract costing convertible shares 250 cost centres 108 cost units 108 costing see absorption costing activity-based costing (ABC) , 130 continuous operation costing , 124, process costing service costing 128 cost centres 108 cost units 108 direct costs direct expenses 109 direct labour 109 direct materials 108 fixed costs , 110 stepped fixed costs 110, 110 indirect costs 109 life-cycle costing 131 marginal costing and break-even analysis and closing down a business segment contribution 138 and make-or-buy decisions and optimal production plans review questions and special order decisions vs absorption costing review questions sources of information 107 specific order costing , 124 batch costing contract costing job costing 124 standard costing review questions standards variance analysis target costing 131 variable costs 111, 111 credit checking 218 current assets current ratio 347 damage and spoilage (inventory cost) 211 daybooks cashbook 2 3, journal 13, 14 purchases daybook 13 returns inwards daybook 13 returns outwards daybook 13 sales daybook 13 debentures 39 debt factoring debt management aged debtors schedule cash discounts cash sales 220 credit checking 218

9 368 Index debt factoring invoice management 217 legal action 220 debt/equity ratio 351 Deloitte Touche Tohmatsu 266 depletion (of an asset) 56 depreciation 55 60, 75 asset disposal and the balance sheet cost of asset 56 depreciation method reducing balance straight line 57 expected useful life 56 depletion 56 obsolescence 56 residual value 56 development expenditure 272 direct costs direct expenses 109 direct labour 109 direct materials 108 directors report discounted cash flow compound interest 231 discount factors 232, 232 weighted average cost of capital (WACC) discounted payback 238 discounts 61, 62 dividend cover (ratio) dividend yield (ratio) 355 dividends per share (DPS) 354 double-entry bookkeeping 3, 4, 4 8 accounting software 14 examples 5 8 rules of 4 5, 5 three-column accounts 14, 14 doubtful debts 61 earnings per share (EPS) 354 economic order quantity (EOQ) efficiency ratios 336, asset turnover inventory turnover 344 trade payables days 345 trade receivables days equity 40 Ernst & Young 266 example budget Financial Accounting Standards Board (FASB) 297 financial records see bookkeeping Financial Reporting Council 294, 294 Financial Reporting Standard for Smaller Entities (FRSSE) Financial Reporting Standards (FRSs) 79, 295, 303 draft FRS financial statements 12, see also balance sheet; income statements; statement of cash flows first in, first out (FIFO) 274, 275 fixed costs , 110 stepped fixed costs 110, 110 gearing ratios 336, debt/equity ratio 351 interest cover 353 weighted average cost of capital (WACC) general ledger 13 general reserve 252 Generally Accepted Accounting Principles (GAAP) 78 79, , 295, future of global overhead recovery going concern (accounting concept) 74 Grant Thornton 266 historical costs (accounting concept) 78 IN01 application form 246, 248 income statements classifying expenditure 27 capital expenditure 27 capital receipts 27 revenue expenditure 27 revenue receipts 27 definition of 21 profit cost of goods sold gross profit net profit 24 review questions and the trial balance 25 incremental budgeting indirect costs 109 intangible assets 35 interest cover (ratio) 353 internal rate of return (IRR) , 237 International Accounting Standard (IAS) , 269, 276, 278, 281, 283 International Accounting Standard (IAS) International Accounting Standard (IAS) 7 284, 315, 318

10 Index 369 International Accounting Standard (IAS) International Accounting Standard (IAS) International Accounting Standard (IAS) International Accounting Standard (IAS) International Accounting Standard (IAS) International Accounting Standard (IAS) , 271 International Accounting Standard (IAS) International Accounting Standards Board (IASB) 73, 79, 294, Conceptual Framework 73 International Financial Reporting Standard (IFRS) International Financial Reporting Standards (IFRS) Foundation 295, 296 International Financial Reporting Standards (IFRSs) 79, 296, 308 inventory costs buffer level 192, 215 bulk discounts 214 damage and spoilage 211 economic order quantity (EOQ) just-in-time management monitoring costs 211 obsolescence 211 reorder level 215 storage costs 211 theft 211 inventory turnover (ratio) 344 investor ratios 336, dividend cover dividend yield 355 dividends per share (DPS) 354 earnings per share (EPS) 354 limitations of price/earnings (P/E) ratio issued share capital job costing 124 journal 13, 14 just-in-time management (inventory) KPMG 266 labour efficiency variance 170 labour variances 170 Late Payment of Commercial Debts (Interest) Act liabilities 1, accruals 38 bank overdraft current liabilities 37 debentures 39 non-current liabilities taxation owing 38 trade payables 37 life-cycle costing 131 limited companies, accounting for annual return auditor s report contents overview directors report International Accounting Standard (IAS) notes to the financial statements review questions statement of cash flows 284 statement of changes in equity statement of comprehensive income statement of financial position worked example bonus issue capital 251 financial statements balance sheet income statements formation of 246 limited liability, meaning of private company limited by guarantee 247 private limited companies 247 private unlimited company 247 public limited companies reserves capital reserves revaluation reserve 253 revenue reserves 252 share premium review questions rights issue share capital convertible shares 250 dividends 248 ordinary shares preference shares Limited Liability Partnership Act liquidity ratios 336, acid test ratio current ratio 347

11 370 Index manufacturing businesses, accounting for cost of manufacturing goods 85 example accounts factory overheads prime cost 84 review questions 100 marginal costing and break-even analysis break-even chart , 141 break-even output level limitations of margin of safety total costs 140, 140 total revenue 139, 139 and closing down a business segment contribution 138 and make-or-buy decisions and optimal production plans review questions and special order decisions vs absorption costing master budget 187, 192 materiality (accounting concept) 76 materials budget 187 materials variances materials price variance 169 materials usage variance 169 money measurement (accounting concept) multi-department overhead recovery 116 net present value (NPV) net realizable value 74 nominal ledger 13 non-recourse factoring 220 not-for-profit organizations, accounting for 91 99, 92 balance sheet 98 99, 99 income and expenditure account income sources bar trading subscription fees review questions statement of affairs 98, 99 objectivity (accounting concept) obsolescence (depreciation) 56 obsolescence (inventory cost) 211 operating cycle see working capital ordinary shares overhead absorption rate (OAR) overhead variances Pacioli, Luca 4 partnerships, accounting for balance sheet 90, 90 capital accounts 88 current accounts 88 example accounts interest on capital 87 interest on drawings 88 limited liability partnerships 91 partnership salaries 87 profit sharing 88 review questions preference shares price variances 168 price/earnings (P/E) ratio PricewaterhouseCoopers 266 prime cost 84 private company limited by guarantee 247 private limited companies 247 private unlimited company 247 process costing production budgets 187, profit cost of goods sold gross profit net profit 24 profit margin (ratio) gross profit margin 338 profit maximization 21 profitability ratios profit margin return on capital employed (ROCE) 337 return on equity (ROE) prudence (accounting concept) 74 public limited companies purchases daybook 13 purchases ledger 13 ratio analysis efficiency ratios 336, asset turnover inventory turnover 344 trade payables days 345 trade receivables days gearing ratios 336, debt/equity ratio 351 interest cover 353 weighted average cost of capital (WACC) investor ratios 336, dividend cover dividend yield 355 dividends per share (DPS) 354 earnings per share (EPS) 354

12 Index 371 limitations of price/earnings (P/E) ratio liquidity ratios 336, acid test ratio current ratio 347 profitability ratios profit margin return on capital employed (ROCE) 337 return on equity (ROE) review questions realization (accounting concept) 77 receipts and payments account 2, 2 recognition (accounting concept) 77 recourse factoring 220 reorder level 215 research expenditure 272 reserves capital reserves revaluation reserve 253 revenue reserves 252 share premium retained earnings 252 return on capital employed (ROCE) 337 return on equity (ROE) returns inwards daybook 13 returns outwards daybook 13 review questions 311 rights issue sales budget 187 sales daybook 13 sales ledger 13 sales variances 173 Sarbanes-Oxley Act 266 scrip issue see bonus issue Securities and Exchange Commission (SEC) 301 separate entity (accounting concept) 76 service costing 128 share capital 39 40, convertible shares 250 dividends 248 ordinary shares preference shares single-entry bookkeeping 2 4 multi-column cashbook 3, 3 problems with 3 4 receipts and payments account, 2, 2 specific order costing , 124 batch costing contract costing job costing 124 standard costing review questions standards attainable 166 basic 166 current 166 ideal 166 review of , 167 variance analysis budget flexibility interpreting variances interrelationships of variances labour variances 170 materials variances overhead variances price variances 168 sales variances 173 volume variances 168 statement of affairs 98, 99 statement of cash flows 284, cash flow from financing activities 319 cash flow from investing activities cash flow from operating activities direct method 316 indirect method interest and dividends 318 cash vs profit capital expenditure 314 loans 315 non-cash profit 314 overtrading 314 foreign exchange transactions review questions worked example statement of changes in equity statement of comprehensive income statement of financial position see balance sheet Statements of Recommended Practice (SORPs) 295 Statements of Standard Accounting Practice (SSAPs) 79, 295, 303, 310 storage costs (inventory) 211 sunk costs 224 T accounts see double-entry bookkeeping tangible assets 34 target costing 131 theft (inventory cost) 211 total labour cost variance 170 total materials cost variance 169 trade payables 37 trade payables days (ratio) 345 trade receivables 36 trade receivables days (ratio)

13 372 Index Urgent Issues Task Force (UITF) 294, 295 variable costs 111, 111 variance analysis budget flexibility interpreting variances interrelationships of variances labour variances 170 materials variances overhead variances price variances 168 sales variances 173 volume variances 168 volume variances 168 wage rate variance 170 weighted average cost of capital (WACC) , working capital cash management 221 debt management aged debtors schedule cash discounts cash sales 220 credit checking 218 debt factoring invoice management 217 legal action 220 inventory costs buffer level 192, 215 bulk discounts 214 damage and spoilage 211 economic order quantity (EOQ) just-in-time management monitoring costs 211 obsolescence 211 reorder level 215 storage costs 211 theft 211 liquidity ratios 210 review questions 222 trade payables working capital cycle , 208 zero-based budgeting

Income statements. Introduction. Calculating profit

Income statements. Introduction. Calculating profit Income statements 02 Introduction Generating as much profit as possible (known as profit maximization) is often seen as the main objective for many businesses. It is possible that a business has other

More information

IM SYLLABUS (2015) ACCOUNTING IM 01 SYLLABUS

IM SYLLABUS (2015) ACCOUNTING IM 01 SYLLABUS IM SYLLABUS (2015) ACCOUNTING IM 01 SYLLABUS 1 Accounting IM01 Syllabus (Available in September) 1 Paper (3 hrs) Introduction The syllabus seeks to develop sound financial literacy, and the presentation

More information

AM01 Syllabus (2017): Accounting AM SYLLABUS (2017) SYLLABUS

AM01 Syllabus (2017): Accounting AM SYLLABUS (2017) SYLLABUS ACCOUNTING AM SYLLABUS (2017) AM01 SYLLABUS 1 Accounting AM01 Syllabus (Available in September) Paper I (3 hrs) + Paper II (3 hrs) Introduction The syllabus builds on the topics set for the SEC Examination

More information

SEC Syllabus (2017) Accounting ACCOUNTING SEC 01

SEC Syllabus (2017) Accounting ACCOUNTING SEC 01 SEC SYLLABUS (2017) ACCOUNTING SEC 01 SYLLABUS 1 Accounting SEC 01 Syllabus (not available in September) Paper 1 (2hrs) + Paper II (2 hrs) The aims of the syllabus are to enable students: 1. To understand

More information

Accounting. and Finance. An Introduction. Eddie McLaney. and. Peter Atrill

Accounting. and Finance. An Introduction. Eddie McLaney. and. Peter Atrill Accounting and Finance An Introduction Eddie McLaney and Peter Atrill PEARSON Marlow, England London New York Boston San Francisco Toronto Sydney Auckland Singapore Hong Kong» Tokyo Seoul Taipei New Delhi

More information

Teacher Resource Bank

Teacher Resource Bank Teacher Resource Bank GCE Accounting Other Guidance: ACCN2 Update on IAS ACCN3 Updates on IAS (July 2012). The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registered

More information

BUSINESS ACCOUNTS. sample documents. sourced from www.osbornebooks.co.uk

BUSINESS ACCOUNTS. sample documents. sourced from www.osbornebooks.co.uk BUSINESS ACCOUNTS sample documents sourced from www.osbornebooks.co.uk Sample documents document page invoice 3 statement 4 double-entry accounts 5 cash book 6 petty cash book 7 extended trial balance

More information

Paper F3. Financial Accounting. Specimen Exam applicable from June 2014. Fundamentals Level Knowledge Module

Paper F3. Financial Accounting. Specimen Exam applicable from June 2014. Fundamentals Level Knowledge Module Fundamentals Level Knowledge Module Financial Accounting Specimen Exam applicable from June 2014 Time allowed: 2 hours This paper is divided into two sections: Section A ALL 35 questions are compulsory

More information

PREPARING FINAL ACCOUNTS. part

PREPARING FINAL ACCOUNTS. part 15_1312MH_CH09 27/1/05 8:38 am Page 87 PREPARING part 3 FINAL ACCOUNTS 9 The final accounts of sole traders 10 Accounting principles, concepts and policies 11 Depreciation and fixed assets 12 Bad debts

More information

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial

More information

Teacher Resource Bank

Teacher Resource Bank Teacher Resource Bank GCE Accounting Other Guidance: Layouts and Formulae ACCN1: Layouts ACCN2: Layouts and Formulae ACCN4: Layouts and Formulae (Updated July 2012) The Assessment and Qualifications Alliance

More information

IGCSE Business Studies revision notes Finance Neil.elrick@tes.tp.edu.tw

IGCSE Business Studies revision notes Finance Neil.elrick@tes.tp.edu.tw IGCSE FINANCE REVISION NOTES Table of contents Table of contents... 2 SOURCES OF FINANCE... 3 CASH FLOW... 5 HOW TO CALCULATE THE CASH BALANCE... 5 HOW TO WORK OUT THE CASH AVAILABLE TO THE BUSINESS...

More information

Accounting. Draft GCE AS and A level subject content

Accounting. Draft GCE AS and A level subject content Accounting Draft GCE AS and A level subject content September 2015 Contents The content for AS and A level accounting 3 Introduction 3 Aims and objectives 3 Subject content 4 Knowledge and understanding

More information

Mustafa Khuwaja - CAT Finalist

Mustafa Khuwaja - CAT Finalist 1 Run through the Flashcards as often as you can during your final revision period. The day before the exam, try to go through the Flashcards again. You will be well on your way to passing your exams.

More information

Glossary of Accounting Terms Peter Baskerville

Glossary of Accounting Terms Peter Baskerville Glossary of Accounting Terms Peter Baskerville Account for or 'bring to account': An accounting phrase used to describe the recording of a financial transaction that is required under the generally accepted

More information

Coimisiún na Scrúduithe Stáit State Examinations Commission. Leaving Certificate 2014. Marking Scheme. Accounting. Higher Level

Coimisiún na Scrúduithe Stáit State Examinations Commission. Leaving Certificate 2014. Marking Scheme. Accounting. Higher Level Coimisiún na Scrúduithe Stáit State Examinations Commission Leaving Certificate 2014 Marking Scheme Accounting Higher Level Note to teachers and students on the use of published marking schemes Marking

More information

National Occupational Standards in Accounting

National Occupational Standards in Accounting National Occupational Standards in Accounting 2 ACCOUNTANCY OCCUPATIONALS STANDARDS GROUP (AOSG) Contents Introduction to the Accounting Standards...4 Accounting Qualification Framework...6 Accounting

More information

Why Do Farmers / Clubs / Firms / Anyone Prepare Accounts? To calculate profit. To assess the effectiveness of different parts of the organisation.

Why Do Farmers / Clubs / Firms / Anyone Prepare Accounts? To calculate profit. To assess the effectiveness of different parts of the organisation. Accounting Theory. In recent years the amount of theory being asked on the Leaving Certificate paper has steadily increased. This is a trend that is likely to continue. Below is an outline of the likely

More information

Detailed competency map: Knowledge requirements. (AAT examination)

Detailed competency map: Knowledge requirements. (AAT examination) Detailed competency map: Knowledge requirements (AAT examination) Fields of competency The items listed are shown with an indicator of the minimum acceptable level of competency, based on a three-point

More information

SEC Syllabus (2015) Accounting SEC SYLLABUS (2015) ACCOUNTING SEC 01 SYLLABUS

SEC Syllabus (2015) Accounting SEC SYLLABUS (2015) ACCOUNTING SEC 01 SYLLABUS SEC SYLLABUS (2015) ACCOUNTING SEC 01 SYLLABUS 1 Accounting SEC 01 Syllabus (not available in September) Paper 1 (2hrs) + Paper II (2 hrs) The aims of the syllabus are to enable students: 1. To understand

More information

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING FORMATION 2 EXAMINATION - AUGUST 2012 NOTES: You are required to answer Question 1. You are also required to answer any three out of Questions 2 to 5. (If you provide answers to all

More information

6. Show all your workings. icpar

6. Show all your workings. icpar CERTIFIED PUBLIC ACCOUNTANT FOUNDATION LEVEL 1 EXAMINATION F1.3: FINANCIAL ACCOUNTING MONDAY: 10 JUNE 2013 INSTRUCTIONS: 1. Time Allowed: 3 hours 15 minutes (15 minutes reading and 3 hours writing). 2.

More information

Supplementary Notes 13/14 for Trimmed BAFS Curriculum

Supplementary Notes 13/14 for Trimmed BAFS Curriculum Supplementary Notes 13/14 for Trimmed BAFS Curriculum (To be implemented in S4 in 2013/14; effective for 2016 HKDSE and onwards) Appendices: 1. Formulae of Ratios 2. Accounting Terminology Compulsory Part

More information

PRINCIPLES OF ACCOUNTS

PRINCIPLES OF ACCOUNTS PRINCIPLES OF ACCOUNTS OBJECTIVE The objective of the examination is to test candidates understanding of the basic principles and methods of accounting and their application to practical situations. THE

More information

Accounting. Charles T. Horngren. Stanford University. Walter Harrison Jr. Baylor University. IVL Suzanne Oliver. Northwest Florida State College

Accounting. Charles T. Horngren. Stanford University. Walter Harrison Jr. Baylor University. IVL Suzanne Oliver. Northwest Florida State College Accounting EIGHTH EDITION Charles T. Horngren Stanford University Walter Harrison Jr. Baylor University IVL Suzanne Oliver Northwest Florida State College Pearson Education International Contents CHAPTER

More information

Advanced Placement (AP) Accounting

Advanced Placement (AP) Accounting Advanced Placement (AP) Accounting The Advanced Placement (AP) Accounting Course is a full academic year course. The course is based on high school teachers having 120 contact hours with students from

More information

Accounting. Financial Accounting: Published Final Accounts and Issues of Shares Pack [ADVANCED HIGHER] Anne Duff. abc

Accounting. Financial Accounting: Published Final Accounts and Issues of Shares Pack [ADVANCED HIGHER] Anne Duff. abc Accounting Financial Accounting: Published Final Accounts and Issues of Shares Pack [ADVANCED HIGHER] Anne Duff abc The Scottish Qualifications Authority regularly reviews the arrangements for National

More information

ZIMBABWE SCHOOL EXAMINATIONS COUNCIL (ZIMSEC) ADVANCED LEVEL SYLLABUS ACCOUNTING 9197

ZIMBABWE SCHOOL EXAMINATIONS COUNCIL (ZIMSEC) ADVANCED LEVEL SYLLABUS ACCOUNTING 9197 ZIMBABWE SCHOOL EXAMINATIONS COUNCIL (ZIMSEC) ADVANCED LEVEL SYLLABUS ACCOUNTING 9197 EXAMINATION SYLLABUS FOR 2013-2016 INTRODUCTION 1.1 The aim of this syllabus is to enable Centres to develop Accounting

More information

CASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes

CASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

RAPID REVIEW Chapter Content

RAPID REVIEW Chapter Content RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

More information

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

More information

CA CPT SAMPLE PAPER FUNDAMENTAL ACCOUNTING (60MARKS)

CA CPT SAMPLE PAPER FUNDAMENTAL ACCOUNTING (60MARKS) CA CPT SAMPLE PAPER FUNDAMENTAL ACCOUNTING (60MARKS) 1. Which of the following provide frame work and accounting policies so that the financial statements of different enterprises become comparable? (a)

More information

110 Questions(with Answers) On Accounting Basics FREE E-book from http://basiccollegeaccounting.com

110 Questions(with Answers) On Accounting Basics FREE E-book from http://basiccollegeaccounting.com (http://basiccollegeaccounting.com) Dedicated to helping Students & Teachers NOTE: 110 Questions & Answers on True Or False on Accounting Basics ACCOUNTING CONCEPTS & DOUBLE ENTRY SYSTEM True False 1.

More information

BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the

BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the INTERNATIONAL DIPLOMA PROGRAM ON BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the MODERN PRACTICAL METHODS OF ACCOUNTING Trained and competent bookkeeping

More information

EasyPC Training. Accounting Basics

EasyPC Training. Accounting Basics EasyPC Training Accounting Basics Contents Accounting Basics... 3 The Accounting Equation... 3 Assets... 3 Liabilities... 3 Owner s Equity... 3 The Balance Sheet... 5 Double Entry Bookkeeping... 6 Ledger

More information

Financing Your Dream: A Presentation at the Youth Business Linkage Forum (#EAWY2014) Akin Oyebode Head SME Banking, Stanbic IBTC Bank, Nigeria.

Financing Your Dream: A Presentation at the Youth Business Linkage Forum (#EAWY2014) Akin Oyebode Head SME Banking, Stanbic IBTC Bank, Nigeria. Financing Your Dream: A Presentation at the Youth Business Linkage Forum (#EAWY2014) Akin Oyebode Head SME Banking, Stanbic IBTC Bank, Nigeria. Content 1 Introduction 2 Profit and loss Account or Income

More information

Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level

Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level ambridge International Examinations ambridge International dvanced Subsidiary and dvanced Level OUNTING 9706/01 Paper 1 Multiple hoice For Examination from 2016 SPEIMEN PPER 1 hour *0123456789* dditional

More information

Interpretation of Financial Statements

Interpretation of Financial Statements Interpretation of Financial Statements Author Noel O Brien, Formation 2 Accounting Framework Examiner. An important component of most introductory financial accounting programmes is the analysis and interpretation

More information

2013 Accounting. Higher - Solutions. Finalised Marking Instructions

2013 Accounting. Higher - Solutions. Finalised Marking Instructions 2013 Accounting Higher - Solutions Finalised Marking Instructions Scottish Qualifications Authority 2013 The information in this publication may be reproduced to support SQA qualifications only on a non-commercial

More information

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION B Com/BBA (2011 Admn. Onwards) II SEMESTER CORE COURSE FINANCIAL ACCOUNTING QUESTION BANK 1) Outstanding expenditure is a account. a) Nominal b) Personnel

More information

IPSAS 2 CASH FLOW STATEMENTS

IPSAS 2 CASH FLOW STATEMENTS IPSAS 2 CASH FLOW STATEMENTS Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 7, Cash Flow Statements published

More information

Financial Accounting (F3/FFA) February 2014 to August 2015

Financial Accounting (F3/FFA) February 2014 to August 2015 Financial Accounting (F3/FFA) February 2014 to August 2015 This syllabus and study guide are designed to help with teaching and learning and is intended to provide detailed information on what could be

More information

LEVEL 1. Financial Accounting Paper 10. Business Accounting Paper 1

LEVEL 1. Financial Accounting Paper 10. Business Accounting Paper 1 SYLLABUS CHART LEVEL 1 BUSINESS ACCOUNTING -PAPER 1 Financial Accounting Paper 10 Business Accounting Paper 1 OVERALL AIM To provide the learner with knowledge and skills of basic accounting concepts and

More information

Advanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Advanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course and Exam Pilot Program

More information

Institute of Certified Bookkeepers

Institute of Certified Bookkeepers Making you count Institute of Certified Bookkeepers Level IV Module 2 Drafting Financial Statements Topic 1 The Regulatory Framework Explain the purpose of Financial Statements, the legal framework that

More information

REPORT ON CANDIDATES WORK IN THE CARIBBEAN SECONDARY EDUCATION CERTIFICATE EXAMINATION JANUARY 2013

REPORT ON CANDIDATES WORK IN THE CARIBBEAN SECONDARY EDUCATION CERTIFICATE EXAMINATION JANUARY 2013 CARIBBEAN EXAMINATIONS COUNCIL REPORT ON CANDIDATES WORK IN THE CARIBBEAN SECONDARY EDUCATION CERTIFICATE EXAMINATION JANUARY 2013 PRINCIPLES OF ACCOUNTS GENERAL PROFICIENCY EXAMINATION Copyright 2013

More information

Basic Accounting Principles

Basic Accounting Principles Basic Accounting Principles Basic Accounting Model The basic accounting model represents the relationship between assets (what the company owns), liabilities (what the company owes), and owner s equity

More information

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING NOVEMBER 2010 MARKS: 300 TIME: 3 hours This question paper consists of 21 pages and an answer book of 19 pages. Accounting 2 DBE/November 2010 INSTRUCTIONS

More information

Trading Profit and Loss Account

Trading Profit and Loss Account Trading Profit and Loss Account Trading Account The trading account shows the income from sales and the direct costs of making those sales. It includes the balance of stocks at the start and end of the

More information

Cork Institute of Technology. Autumn 2006 Advanced Financial Accounting (Time: 3 Hours)

Cork Institute of Technology. Autumn 2006 Advanced Financial Accounting (Time: 3 Hours) Cork Institute of Technology Bachelor of Business in Accounting Award Bachelor of Business in Management - Award Instructions Answer FOUR questions Answer all THREE questions in Section A and ONE question

More information

Advanced Financial Accounting

Advanced Financial Accounting Advanced Financial Accounting Sample Paper 2 Questions & Suggested Solutions Page 1 of 27 INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY Candidates must indicate clearly whether they are answering the

More information

1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.

1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system. Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is

More information

WORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY

WORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY Accounting Technician 1 WORK PROCESS SCHEDULE ACCOUNTING TECHNICIAN O*NET-SOC CODE: 43-3031.00 RAIS CODE: 1125HY DESCRIPTION: Compute, classify, and record numerical data to keep financial records complete.

More information

Chapter. Statement of Cash Flows For Single Company

Chapter. Statement of Cash Flows For Single Company Chapter 4 Statement of Cash Flows For Single Company 4.1 Single company statement of cash flows Statement of cash flows are primary financial statements and are required along side the income statement

More information

Accounting Pilot & Bridge Project Course Outline, Learning Objectives and Student Outcomes

Accounting Pilot & Bridge Project Course Outline, Learning Objectives and Student Outcomes Accounting Pilot & Bridge Project Course Outline, Learning Objectives and Student Outcomes Course Overview The Accounting Pilot & Bridge Project is a year-long course based on high school teachers having

More information

Ratio Analysis CBDC, NB. Presented by ACSBE. February, 2008. Copyright 2007 ACSBE. All Rights Reserved.

Ratio Analysis CBDC, NB. Presented by ACSBE. February, 2008. Copyright 2007 ACSBE. All Rights Reserved. Ratio Analysis CBDC, NB February, 2008 Presented by ACSBE Financial Analysis What is Financial Analysis? What Can Financial Ratios Tell? 7 Categories of Financial Ratios Significance of Using Ratios Industry

More information

Cash Flow Statements

Cash Flow Statements Compiled Accounting Standard AASB 107 Cash Flow Statements This compiled Standard applies to annual reporting periods beginning on or after 1 July 2007. Early application is permitted. It incorporates

More information

Coimisiún na Scrúduithe Stáit State Examinations Commission

Coimisiún na Scrúduithe Stáit State Examinations Commission 2007. M55 Coimisiún na Scrúduithe Stáit State Examinations Commission LEAVING CERTIFICATE EXAMINATION, 2007 A C C O U N T I N G - H I G H E R L E V E L (400 marks) This paper is divided into 3 Sections:

More information

International Accounting Standard 7 Statement of cash flows *

International Accounting Standard 7 Statement of cash flows * International Accounting Standard 7 Statement of cash flows * Objective Information about the cash flows of an entity is useful in providing users of financial statements with a basis to assess the ability

More information

Business, Accounting and Financial Studies :Syllabus

Business, Accounting and Financial Studies :Syllabus Business, Accounting and Financial Studies :Syllabus 1(a) Business Environment 營 商 環 境 Hong Kong Business Environment Forms of Business Ownership Business Ethics and Social Responsibilities 1(b) Introduction

More information

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program

More information

6.3 PROFIT AND LOSS AND BALANCE SHEETS. Simple Financial Calculations. Analysing Performance - The Balance Sheet. Analysing Performance

6.3 PROFIT AND LOSS AND BALANCE SHEETS. Simple Financial Calculations. Analysing Performance - The Balance Sheet. Analysing Performance 63 COSTS AND COSTING 6 PROFIT AND LOSS AND BALANCE SHEETS Simple Financial Calculations Analysing Performance - The Balance Sheet Analysing Performance Analysing Financial Performance Profit And Loss Forecast

More information

Fundamentals Level Skills Module, Paper F9. Section A. Monetary value of return = $3 10 x 1 197 = $3 71 Current share price = $3 71 $0 21 = $3 50

Fundamentals Level Skills Module, Paper F9. Section A. Monetary value of return = $3 10 x 1 197 = $3 71 Current share price = $3 71 $0 21 = $3 50 Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2014 Answers Section A 1 A Monetary value of return = $3 10 x 1 197 = $3 71 Current share price = $3 71 $0 21 = $3 50 2

More information

NATIONAL SENIOR CERTIFICATE GRADE 12

NATIONAL SENIOR CERTIFICATE GRADE 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING FEBRUARY/MARCH 2013 MEMORANDUM MARKS: 300 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information. 0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting

More information

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

More information

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program

More information

Principles of Accounting

Principles of Accounting PRINCIPLES OF ACCOUNTING 1 Principles of Accounting Lecturer: Victoria V. Dobrynskaya, Nikita K. Pirogov Class teachers: Victoria V. Dobrynskaya, Victoria V. Poleschuk, Tatyana S. Shurchkova, Sergey N.

More information

SOLE TRADER FINAL ACCOUNTS

SOLE TRADER FINAL ACCOUNTS 6 SOLE TRADER FINAL ACCOUNTS CASE STUDY Starting out in business Olivia Boulton used to work as a buyer of kitchen and cookware goods for a large department store in central London. She was good at her

More information

MARK SCHEME for the October/November 2014 series 0452 ACCOUNTING. 0452/23 Paper 2, maximum raw mark 120

MARK SCHEME for the October/November 2014 series 0452 ACCOUNTING. 0452/23 Paper 2, maximum raw mark 120 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November series 0452 ACCOUNTING 0452/23 Paper 2, maximum raw mark 120

More information

Cash budget Predict the movements of cash received and paid for over a period of time. Financial statements

Cash budget Predict the movements of cash received and paid for over a period of time. Financial statements Achievement Standard 90976 Demonstrate understanding of accounting concepts for small entities ACCOUNTING. Externally assessed 3 credits Accounting 90976 (Accounting.) involves the recognition, definition

More information

Diploma in Accounting & Finance

Diploma in Accounting & Finance Brentwood Open Learning College Diploma in Accounting & Finance (Level 4) Course Structure & Contents Diploma in Accounting & Finance Course Structure Contents Page 1 Unit 1 to Accounting & Finance The

More information

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

More information

National 5 Accounting Course Assessment Specification (C700 75)

National 5 Accounting Course Assessment Specification (C700 75) National 5 Accounting Course Assessment Specification (C700 75) Valid from August 2013 First edition: April 2012 Revised: August 2015, version 1.3 This specification may be reproduced in whole or in part

More information

NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS

NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS NAS 03 NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS CONTENTS Paragraphs OBJECTIVE SCOPE 1-3 BENEFITS OF CASH FLOWS INFORMATION 4-5 DEFINITIONS 6-9 Cash and cash equivalents 7-9 PRESENTATION OF A

More information

TYPES OF FINANCIAL RATIOS

TYPES OF FINANCIAL RATIOS TYPES OF FINANCIAL RATIOS In the previous articles we discussed how to invest in the stock market and unit trusts. When investing in the stock market an investor should have a clear understanding about

More information

NATIONAL SENIOR CERTIFICATE GRADE 12

NATIONAL SENIOR CERTIFICATE GRADE 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING FEBRUARY/MARCH 2015 MEMORANDUM MARKS: 300 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere

More information

Chapter. Financial Analysis

Chapter. Financial Analysis Chapter 18 Financial Analysis Financial analysis The objective of financial statements is to provide information to all the users of these accounts to help them in their decision-making. Note that most

More information

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING NOVEMBER 2013 MARKS: 300 TIME: 3 hours This question paper consists of 24 pages and an 18-page answer book. Accounting 2 DBE/November 2013 INSTRUCTIONS

More information

NATIONAL 5 Accounting

NATIONAL 5 Accounting MADRAS COLLEGE FACULTY OF TECHNOLOGIES DEPARTMENT OF BUSINESS AND COMPUTING NATIONAL 5 Accounting Course Information ACCOUNTING NATIONAL 5 COURSE AIMS AND STRUCTURE The course aims to enable learners to:

More information

PRINCIPLES OF ACCOUNTS 2011-AL-P ACCT

PRINCIPLES OF ACCOUNTS 2011-AL-P ACCT PRINCIPLES OF ACCOUNTS 2011-AL-P ACCT ADVANCED LEVEL OBJECTIVES The examination aims to test the candidates abilities to: 1. demonstrate knowledge of accounting procedures and practices and an understanding

More information

GUIDE TO FRS 102 DISCLOSURE

GUIDE TO FRS 102 DISCLOSURE GUIDE TO FRS 102 DISCLOSURE in Relate Accounts +353 1 4597800 +44 871 284 3446 info@relate-software.com www.relate-software.com ROI R005 CONTENTS Relate Accounts Introduction...4 Background...4 The Future

More information

Unit Title: Managerial Accounting Unit Reference Number: D/502/4812 Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18

Unit Title: Managerial Accounting Unit Reference Number: D/502/4812 Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18 Unit Title: Managerial Accounting Unit Reference Number: D/502/4812 Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18 Unit objective and aim(s): This unit aims to give learners a comprehensive

More information

School of Distance Education UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION. V Semester. (2011 Admission Onwards) OPEN COURSE

School of Distance Education UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION. V Semester. (2011 Admission Onwards) OPEN COURSE UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION V Semester (2011 Admission Onwards) OPEN COURSE (For the UG candidates with core course other than B Com) BASIC ACCOUNTING QUESTION BANK 1. The prime

More information

ACCOUNTING DICTIONARY

ACCOUNTING DICTIONARY ACCOUNTING DICTIONARY A Account a record summarizing all the information pertaining to a single item in the accounting equation Account balance the amount in an account Account number the number assigned

More information

TOPIC LEARNING OBJECTIVE

TOPIC LEARNING OBJECTIVE Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation

More information

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

More information

Suggested layouts for financial statements in Accounting Courses National 5 and Higher

Suggested layouts for financial statements in Accounting Courses National 5 and Higher Suggested layouts for financial statements in Accounting Courses National 5 and Higher The following suggested layouts may be used when presenting financial statements in the Accounting Courses for National

More information

LEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING

LEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING LEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING JULY 2015 MULTIPLE CHOICE QUESTIONS (37.5%) Choose the correct answer 1. All of the following statements concerning standard costs

More information

Statement of Cash Flows

Statement of Cash Flows HKAS 7 Revised February November 2014 Hong Kong Accounting Standard 7 Statement of Cash Flows HKAS 7 COPYRIGHT Copyright 2014 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial

More information

INSTITUTE OF FINANCIAL ACCOUNTANTS JUNE 2011 EXAMINATION. D1. Financial Accounting

INSTITUTE OF FINANCIAL ACCOUNTANTS JUNE 2011 EXAMINATION. D1. Financial Accounting 1 INSTITUTE OF FINANCIAL ACCOUNTANTS JUNE 2011 EXAMINATION D1. Financial Accounting Instructions to candidates 1. Time allowed is 3 hours and 10 minutes, which includes 10 minutes reading time. 2. This

More information

Introductory Financial Accounting Course Outline

Introductory Financial Accounting Course Outline Aboriginal Financial Officers Association of Alberta Introductory Financial Accounting Course Outline ACCT 210: INTRODUCTORY FINANCIAL ACCOUNTING I... 1 ACCT 240: INTRODUCTORY FINANCIAL ACCOUNTING II...

More information

CENTRE FOR CONTINUING EDUCATION BBA (AVIATION OPERATION)

CENTRE FOR CONTINUING EDUCATION BBA (AVIATION OPERATION) CENTRE FOR CONTINUING EDUCATION BBA (AVIATION OPERATION) BATCH: SEMESTER: NAME: ROLL NO: ASSIGNMENT 1 & 2 FOR BUSINESS ACCOUNTING BBCF 131 UNIVERSITY OF PETROLEUM & ENERGY STUDIES Assignment-1 Note: All

More information

specification AS/A Level GCE GCE Accounting version 3 September 2013

specification AS/A Level GCE GCE Accounting version 3 September 2013 AS/A Level GCE GCE Accounting OCR Advanced Subsidiary GCE in Accounting H011 OCR Advanced GCE in Accounting H411 version 3 September 2013 specification OCR 2013 QAN 500/2302/0 QAN 500/2187/4 Contents 1

More information

Using Accounts to Interpret Performance

Using Accounts to Interpret Performance Using s to Interpret Performance ing information is used by stakeholders to judge the performance and efficiency of a business Different stakeholders will look for different things: STAKEHOLDER Shareholders

More information

tutor2u Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005

tutor2u Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005 Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005 Importance of Cash (1) A business can exist for a while without making profits but

More information

CHAPTER 10 Financial Statements NOTE

CHAPTER 10 Financial Statements NOTE NOTE In practice, accruals accounts and prepayments accounts are implied rather than drawn up. It is common for expense accounts to show simply a balance c/d and a balance b/d. The accrual or prepayment

More information

1 Money and income Currency currency notes (banknotes) coins cash bank deposits BrE: note or banknote; on paper AmE: bill

1 Money and income Currency currency notes (banknotes) coins cash bank deposits BrE: note or banknote; on paper AmE: bill 1 A B Money and income Currency The money used in a country euros, dollars, yen, etc. is its currency. Money in notes (banknotes) and coins is called cash. Most money, however, consists of bank deposits:

More information

FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS

FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS SYLLABUS Compulsory part Basic ratio analysis 1. State the general functions of accounting ratios. 2. Calculate and interpret the following ratios: a. working capital/current ratio, quick/liquid/acid test

More information