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Certificate Paper C2
FUNDAMENTALS OF
FINANCIAL ACCOUNTING
For assessments in 2010 and 2011
Study Text
In this February 2010 new edition
•
Auser-friendly format for easy navigation
•
Regularfast forward summaries emphasising the key points in each chapter
•
Assessment focus points showing you what the assessor will want you to do
•
Questions and quick quizzes to test your understanding
•
Question bank containing objective test questions with answers
•
A full index
BPP Learning Media's
i-Pass
product also supports this paper.
FOR ASSESSMENTS IN 2010 and 2011
This text has been fully updated for IAS 1 (revised). However the latest
information from CIMA is that this will not be assessed until Autumn 2010.
At this level the main changes are in terminology. Therefore students taking their
Computer Based Assessments before Autumn 2010 should refer to the list of
terms on page xix.
First edition June 2006
Third edition February 2010
A note about copyright
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ii
Contents
Page
Introduction
The BPP Learning Media Study Text – The BPP Learning Media Effective Study Package – Help yourself
study for your CIMA assessment –Learning outcomes and syllabus – The assessment – Tackling multiple
choice questions – Tackling objective test questions – International terminology
Part A Conceptual and regulatory framework
1
The nature and objectives of accounting .....................................................................................................................................
2
Assets and liabilities .................................................................................................................................................................
3
An introduction to final accounts ..............................................................................................................................................
Part B Accounting systems and accounts preparation
4 Sources, records and the books of prime entry .........................................................................................................................
5 Ledger accounting and double entry .........................................................................................................................................
6 From trial balance to financial statements .................................................................................................................................
7 Preparing accounts: concepts and conventions ......................................................................................................................
8 Accruals and prepayments ......................................................................................................................................................
9 Non-current assets – depreciation, revaluation and disposal..................................................................................................
10 Bad debts and allowances for receivables ...............................................................................................................................
11 Cost of goods sold and inventories.........................................................................................................................................
12 Bank reconciliations................................................................................................................................................................
13 Control accounts.....................................................................................................................................................................
14 Accounting for sales tax..........................................................................................................................................................
15 Accounting for payroll.............................................................................................................................................................
16 Correction of errors.................................................................................................................................................................
Part C Final accounts and audit
17 Preparation of sole trader’s accounts ......................................................................................................................................
18 Limited liability companies .....................................................................................................................................................
19 Incomplete records .................................................................................................................................................................
20 The accounts of unincorporated organisations (income and expenditure accounts) ...............................................................
21 Manufacturing accounts..........................................................................................................................................................
22 The regulatory system.............................................................................................................................................................
23 Internal and external audit.......................................................................................................................................................
Part D Interpretation of accounts
24 Statements of cash flows ........................................................................................................................................................
25 Interpreting company accounts ...............................................................................................................................................
Question bank (computer-based assessment) ..................................................................................................................................
Answer bank (computer-based assessment).....................................................................................................................................
Index ...............................................................................................................................................................................................
Review form and free prize draw
iii
The BPP Learning Media Study Text
Aims of this Study Text
To provide you with the knowledge and understanding, skills and application techniques that you need if you are
to be successful in your exams
This Study Text has been written around the
Fundamentals of Financial Accounting
syllabus.
•
It is
comprehensive
. It covers the syllabus content. No more, no less.
•
It is written at the
right level
. Each chapter is written with CIMA's precise learning outcomes in
mind.
•
It is targeted to the
assessment
. We have taken account of guidance CIMA has given and the
assessment methodology.
To allow you to study in the way that best suits your learning style and the time you have available, by following
your personal Study Plan (see
You may be studying at home on your own until the date of the exam, or you may be attending a full-time course.
You may like to (and have time to) read every word, or you may prefer to (or only have time to) skim-read and
devote the remainder of your time to question practice. Wherever you fall in the spectrum, you will find the BPP
Learning Media Study Text meets your needs in designing and following your personal Study Plan.
To tie in with the other components of the BPP Learning Media Effective Study Package to ensure you have the
best possible chance of passing the exam (see
Learning to Learn Accountancy
BPP Learning Media's ground-breaking
Learning to Learn Accountancy
book is designed to be used both at the
outset of your CIMA studies and throughout the process of learning accountancy. It challenges you to consider
how you study and gives you helpful hints about how to approach the various types of paper which you will
encounter. It can help you
focus your studies on the subject and exam
, enabling you to
acquire knowledge
,
practise and revise
efficiently and effectively
.
iv
Introduction
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