Adjust a profit or loss for an accounting period after the correction of errors

Apply accounting ratios to inter-firm comparison

Apply the techniques of mark-up, margin and inventory turnover to arrive at missing figures

Balance ledger accounts as required and make transfers to financial statements

Banks

Business entity

Calculate and comment on the effect on asset valuations of incorrect treatment

Calculate and comment on the effect on profit of incorrect treatment

Calculate factory cost of production

Calculate profit or loss for the year from changes in capital over time

Calculate sales, purchases, gross profit, trade receivables and trade payables and other figures from incomplete information

Club members

Comparability

Complete pro-forma business documents

Consistency

Correct errors by means of journal entries

Correct errors by means of suspense accounts

Current ratio

Define and calculate the accumulated fund

Define depreciation

Difficulties of definition

Distinguish between and account for capital expenditure and revenue expenditure

Distinguish between and account for capital receipts and revenue receipts

Distinguish between and account for trade discount and cash discounts

Distinguish between direct and indirect costs

Distinguish between receipts and payments accounts and income and expenditure accounts

Draw up partners' capital and current accounts in ledger account form and as part of a statement of financial position

Duality

Explain and apply the accounting equation

Explain and apply the imprest system of petty cash

Explain the advantage of using various books of prime entry

Explain the advantages and disadvantages of forming a partnership

Explain the advantages and disadvantages of operating as a limited company

Explain the advantages and disadvantages of operating as a sole trader

Explain the difference between a trading business and a service business

Explain the disadvantages of not maintaining a full set of accounting records

Explain the dual function of the cash book as a book of prime entry and as a ledger account for bank and cash

Explain the importance of preparing income statements and statements of financial position

Explain the meaning of assets, liabilities and owner's equity

Explain the purpose of an appropriation account

Explain the reasons for accounting for depreciation

Explain the reasons for maintaining a provision for doubtful debts

Explain the relationship of gross profit and profit for the year to the valuation of inventory, rate of inventory turnover, revenue, expenses, and equity

Explain the role of accounting in providing information for monitoring progress and decision-making

Explain the use of a suspense account as a temporary measure to balance the trial balance

Explain the use of and process accounting data in the books of prime entry: cash book, petty cash book, sales journal, purchases journal, sales returns journal, purchases returns journal and the general journal

Explain the use of and record payments and receipts made by bank transfers and other electronic means

Explain the uses of and differences between capital and current accounts

Going concern

Gross margin

Historic cost

Identify and explain those errors which do not affect the trial balance: commission, compensating, complete reversal, omission, original entry, principle

Identify the books of prime entry as sources of information for the control account entries

Interpret ledger accounts and their balances

Investors

Liquid (acid test) ratio

Make adjustments for accrued and prepaid expenses and accrued and prepaid income

Make adjustments for goods taken by the owner for own use

Make adjustments for irrecoverable debts and provisions for doubtful debts

Make adjustments for provision for depreciation using the straight line, reducing balance and revaluation methods

Make adjustments to financial statements as detailed in 5.1 (sole traders)

Make recommendations and suggestions for improving profitability and working capital

Managers

Matching

Materiality

Money measurement

Name and describe the straight-line, reducing balance and revaluation methods of depreciation

Non-financial aspects

Other interested parties such as governments, tax authorities, etc.

Outline the double entry system of book-keeping

Outline the importance and contents of a partnership agreement

Outline the uses and limitations of a trial balance

Owners

Post the ledger entries from the books of prime entry

Post transactions to the ledger accounts

Prepare a trial balance from a given list of balances and amend a trial balance which contains errors

Prepare accounts for revenue-generating activities, e.g. refreshments, subscriptions

Prepare and comment on simple statements showing comparison of results for different years

Prepare income and expenditure accounts and statements of financial position

Prepare income statements and statements of financial position from incomplete records

Prepare income statements for trading businesses and for service businesses

Prepare income statements, appropriation accounts and statements of financial position

Prepare income statements, statements of changes in equity and statements of financial position

Prepare ledger accounts

Prepare ledger accounts and journal entries for the provision of depreciation

Prepare ledger accounts and journal entries to record accrued and prepaid expenses

Prepare ledger accounts and journal entries to record accrued and prepaid incomes

Prepare ledger accounts and journal entries to record irrecoverable debts

Prepare ledger accounts and journal entries to record recovery of debts written off

Prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for doubtful debts

Prepare ledger accounts and journal entries to record the sale of non-current assets, including the use of disposal accounts

Prepare manufacturing accounts, income statements and statements of financial position

Prepare opening and closing statements of affairs

Prepare purchases ledger and sales ledger control accounts to include credit purchases and sales, receipts and payments, cash discounts, returns, irrecoverable debts, dishonoured cheques, interest on overdue accounts, contra entries, refunds, opening

Prepare receipts and payments accounts

Prepare simple inventory valuation statements

Prepare statements of financial position for trading businesses and service businesses

Process accounting data using the double entry system

Profit margin

Prudence

Rate of inventory turnover (times)

Realisation

Recognise and define the content of a statement of financial position: non-current assets, intangible assets, current assets, current liabilities, non-current liabilities and capital

Recognise and understand the following business documents: invoice, debit note, credit note, statement of account, cheque, receipt

Recognise the division of the ledger into the sales ledger, the purchases ledger and the nominal (general) ledger

Recognise the importance of matching costs and revenues

Recognise the importance of valuation of inventory and the effect of an incorrect valuation of inventory on gross profit, profit for the year, equity and asset valuation

Record interest on partners' loans, interest on capital, interest on drawings, partners' salaries and the division of the balance of profit or loss

Relevance

Reliability

Return on capital employed (ROCE)

State the purposes of measuring business profit and loss

Trade payables

Trade payables turnover (days)

Trade receivables turnover (days)

Understand and distinguish between issued, called-up and paid-up share capital

Understand and distinguish between share capital (preference shares and ordinary shares) and loan capital (debentures)

Understand and explain the difference between book-keeping and accounting

Understand and make adjustments for work in progress

Understand direct material, direct labour, prime cost and factory overheads

Understand that a trial balance is a statement of ledger balances on a particular date

Understand that statements of financial position record assets and liabilities on a specified date

Understand the basis of the valuation of inventory at the lower of cost and net realisable value

Understand the capital structure of a limited company comprising preference share capital, ordinary share capital, general reserve and retained earnings

Understand the effect of correction of errors on a statement of financial position

Understand the inter-relationship of items in a statement of financial position

Understand the meaning of irrecoverable debts and recovery of debts written off

Understand the meaning of the term equity

Understand the meaning of the term limited liability

Understand the problems of inter-firm comparison

Understand the purpose of and prepare a bank reconciliation statement to include bank errors, uncredited deposits and unpresented cheques

Understand the purposes of purchases ledger and sales ledger control accounts

Understand the significance of the difference between the gross margin and the profit margin as an indicator of a business's efficiency

Understand the use and purpose of a bank statement

Understand the use of business documents as sources of information: invoice, credit note, cheque counterfoil, paying-in slip, receipt, bank statement

Understandability

Update the cash book for bank charges, bank interest paid and received, correction of errors, credit transfers, direct debits, dividends, and standing orders