Overview of the Program
(As per Cambridge International Syllabus)
Aims
The aims describe the purposes of a course based on this syllabus.
The aims are to enable students to develop:
• knowledge and understanding of the principles and purposes of accounting for individuals, businesses,
non-trading organisations and society as a whole
• an understanding of accounting concepts, principles, policies, techniques, procedures and terminology
• improved skills of numeracy, literacy, communication, enquiry, presentation and interpretation
• improved accuracy, orderliness and the ability to think logically
• an excellent foundation for advanced study
Content overview
1 The fundamentals of accounting
This section introduces the subject by explaining the difference between book-keeping and accounting. The
role of accounting in providing information and the purposes of measuring business profit and loss are also
explored. Basic accounting terms and the accounting equation are introduced.
2 Sources and recording of data
The core topic of this section is the double entry system of book-keeping and how this is applied in the
preparation of ledger accounts. The division of the ledger is considered. Business documents and their use as
sources of information are also included. Consideration is given to the procedures for processing information in
books of prime entry.
3 Verification of accounting records
This section concentrates on the use of trial balances, bank reconciliation statements and control accounts as
means of verifying accounting records. The procedures for the correction of errors are also covered.
4 Accounting procedures
Within this section, consideration is given to the importance of distinguishing between capital and revenue
expenditure and receipts. Non-current assets are further explored in terms of accounting for depreciation
and disposals. Procedures to record adjustments for accruals and prepayments, irrecoverable debts, provision
of doubtful debts and the recovery of debts written off are included. Inventory valuation, and its impact on
financial statements, is also covered.
5 Preparation of financial statements
The focus of this section is the preparation of financial statements, including year-end adjustments, for
different types of businesses (sole traders, partnerships and limited companies). Consideration is also given to
the financial statements of clubs and societies and manufacturing businesses. The procedures employed when
only incomplete records are available are also covered.
6 Analysis and interpretation
This section introduces the calculation and the interpretation of the main accounting ratios. The use of ratios
in inter-firm comparison is also included. Consideration is also given to the uses of accounting information by
interested parties. The limitations of accounting statements are also explored.
7 Accounting principles and policies
The main accounting principles are introduced together with how they are applied in accounting records and
statements. Consideration is also given to the influence of international accounting standards and the selection
of accounting policies.
Accounting ratios
Our Moodle Course Structure and Organization
Each of the above content modules is divided into unit level modules to enable easier and quicker learning and to have a better practice. Each Unit Level Module name has a prefix of the course module name. For example, unit module 'Difference between Book-Keeping, Accounting and Reporting' is titled as 'Fundamentals of Accounting - Difference between Book-Keeping, Accounting and Reporting' with short title 'FundAcctgBKAcctgNReprtg'. Similarly, 'Role of Accounting' is titled as 'Fundamentals of Accounting - Role of Accounting' is titled as ' 'Fundamentals of Accounting - Role of Accounting' with short title 'FundAcctgRoleAcctg'.