AccountingCode 9706
The accounting system
What this topic asks you to be able to do
- the principles behind recording business transactions by double entry
- the accounting equation
- what books of prime entry do when a business transaction is recorded, covering each of these books: sales journal; sales returns journal; purchases journal; purchases returns journal; cash book; general journal
- preparation of ledger accounts
- why a trial balance is drawn up
- what a business gains and loses by keeping full accounting records
- the accounting concepts that guide whoever draws up a business's financial statements, which are: business entity, historic cost, money measurement, going concern, consistency, prudence, realisation, duality, materiality, objectivity, matching /accruals and substance over form
- employing computerised accounting systems to record financial transactions
- what a business stands to gain and lose by bringing in a computerised accounting system
- the methods by which data can be kept secure within a computerised accounting system
- Draw on your grasp of the accounting system to evaluate relevant information so as to arrive at informed business decisions