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| Section | Weight | Objectives |
|---|---|---|
| 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 |
| Analysis of Financial Statements | 10% | - Interpretation using accounting ratios - Limitations of financial statements - Liquidity, profitability and solvency analysis |
| Recording Accounting Transactions | 50% | - Accounting for assets, liabilities, equity and expenses - 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 Principles, Concepts and Regulations | 10% | - Nature and objective of financial accounting - Accounting standards and principles - Conceptual and regulatory framework - Elements of financial statements |
Which one of the following is an error of principle?
Correct Answer: A 🗳️
A public limited company declares a 10% final dividend.
The nominal value of the shares is 50p and the shares are currently trading, in the stock market, at a price of £2.
A shareholder who purchased 1000 shares at a price of £1.00 per share, will receive a dividend of:
Give your answer to 2 decimal places.
Correct Answer:
£49.99
Refer to the Exhibit.
A club receives the following fees in its first two years of operations:
Entrance fees are to be recognized over a period of 5 years while life membership fees are to be credited over a period of 10 years.
The total amount of fees which will be recognized in the income and expenditure account for each of the two years is:
Correct Answer: A 🗳️
Which of the following transactions would be classified as a revenue transaction?
Correct Answer: A 🗳️
Company A has a receivables turnover ratio of six times, while Company B, which operates in the same market sector, has a receivables turnover ratio of five times.
This suggests that
Correct Answer: A 🗳️
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