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Cambridge O Level Accounting (7707) Notes

Cambridge O Level Accounting (7707) Notes

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1The fundamentals of accounting

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  • 1.1 The purpose of accounting
  • 1.2 The accounting equation

2Sources and recording of data

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  • 2.1 The double entry system of book-keeping
  • 2.2 Business documents
  • 2.3 Books of prime entry

3Verification of accounting records

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  • 3.1 The trial balance
  • 3.2 Correction of errors
  • 3.3 Bank reconciliation
  • 3.4 Control accounts

4Accounting procedures

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  • 4.1 Capital and revenue expenditure and receipts
  • 4.2 Accounting for depreciation and disposal of non-current assets
  • 4.3 Other payables and other receivables
  • 4.4 Irrecoverable debts and provision for doubtful debts
  • 4.5 Valuation of inventory

5Preparation of financial statements

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  • 5.1 Sole traders
  • 5.2 Partnerships
  • 5.3 Limited companies
  • 5.4 Clubs and societies
  • 5.5 Manufacturing accounts
  • 5.6 Incomplete records

6Analysis and interpretation

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  • 6.1 Calculation and understanding of accounting ratios
  • 6.2 Interpretation of accounting ratios
  • 6.3 Inter-firm comparison
  • 6.4 Interested parties
  • 6.5 Limitations of accounting statements

7Accounting principles and policies

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  • 7.1 Accounting principles
  • 7.2 Accounting policies