Cambridge IGCSE Accounting

The Cambridge IGCSE Accounting syllabus introduces learners to the theory and concepts of accounting and the ways in which accounting is used in a variety of modern economic and business contexts. Learners focus on the skills of recording, reporting, presenting and interpreting financial information and build an ideal foundation both for further study and for a future career within the profession.

Aims of the Course

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.

Syllabus

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.

Aims of the Assessment

1. Knowledge and understanding
Candidates should be able to:
• Demonstrate knowledge and understanding of facts, terms, principles, policies, procedures and techniques that are in the syllabus
• Demonstrate understanding of knowledge through numeracy, literacy, presentation and interpretation and apply this knowledge and understanding in various accounting situations and problems.

2. Analysis
Candidates should be able to:
• Select data which is relevant to identified needs of business
• Order, analyse and present information in an appropriate accounting form.

3. Evaluation
Candidates should be able to:
• Interpret and evaluate accounting information and draw reasoned conclusions.

Assessment

Paper 1
Multiple Choice
Multiple-choice questions. Questions will be based on all syllabus content. Externally assessed
1 hour 15 minutes
35 marks
Weighting- 30%

Paper 2
Structured Written Paper
Questions will be based on all syllabus content. Externally assessed
1 hour 45 minutes
100 marks
Weighting- 70%

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