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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Analysis of Financial Statements | 10% | - Limitations of financial statements - Interpretation using accounting ratios - Liquidity, profitability and solvency analysis |
| Topic 2: Recording Accounting Transactions | 50% | - Reconciliations (bank, receivables, payables) - Sources of records and books of prime entry - Correction of errors and control accounts - Double-entry bookkeeping and ledger accounts - Accounting for assets, liabilities, equity and expenses |
| Topic 3: Accounting Principles, Concepts and Regulations | 10% | - Elements of financial statements - Accounting standards and principles - Conceptual and regulatory framework - Nature and objective of financial accounting |
| Topic 4: Preparation of Accounts for Single Entities | 30% | - Adjusting entries and trial balance - Preparation of income statement - Preparation of simple cash flow statement - Preparation of statement of financial position - Manufacturing and inventory accounting |
One of the main responsibilities of internal auditors is to check the operational systems within their organization to establish whether the system's internal controls are sufficient and in full operation.
Which THREE of the following are examples of internal controls?
Correct Answer: A,D,F 🗳️
Refer to the Exhibit.
Berber Limited is preparing its year-end accounts and is reviewing the method used to estimate the allowance for receivables.
An aged receivables schedule shows the following position:
The company believes that the previous percentages used were not prudent enough and it has decided to increase the percentages on 2-3 months debt to 10% and on 3 months plus debt to 50%. The current allowance for receivables is $1,500.
What would be the effect on the income statement of the change in accounting policy
Correct Answer: B 🗳️
Refer to the Exhibit.
A company had previously written off one of their receivables that had been declared bankrupt. The administrators of the bankruptcy have now sent a cheque to the company for the full amount originally outstanding. The company now needs to record this receipt.
Which of the following is the correct double entry?
Correct Answer: D 🗳️
LMN's totals for its sales day book and its cash receipts book for the month ended 31 January 20X6 are as follows
What is the total value for sales that LMN will post to the sales account in the nominal ledger for January
20X6?
Correct Answer: D 🗳️
IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?
Correct Answer: A 🗳️
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