Accounting syllabus, dot point by dot point

Record inventory under perpetual and periodic systems and value closing inventory using the FIFO cost flow

How does the choice of inventory system and cost flow affect reported profit?

Apply the accounting equation and the rules of double-entry to analyse the dual effect of business transactions

Why does every transaction keep the accounting equation in balance?

Record business transactions through journals and post them to ledger accounts to prepare a trial balance

How does a transaction travel from source document to ledger balance?

Record the goods and services tax on sales and purchases using source documents and report the net GST liability

How is GST recorded and why is it neither revenue nor an expense for the business?

Prepare balance day adjustments for accruals, prepayments, depreciation and doubtful debts to produce accurate final reports

Why must the ledger be adjusted at balance day before reports are prepared?

Prepare and present the income statement, balance sheet and cash flow statement for a business

What do the three main financial statements tell users about a business?

Topic 2: Analysing and Interpreting Financial Information

Apply horizontal, vertical and trend analysis to compare financial statements over time and within a period

How do horizontal, vertical and trend analysis turn raw statements into comparisons?

Interpret financial information using trend analysis, benchmarking and the limitations of the data to evaluate performance

How do we turn financial figures and ratios into a judgement about a business?

Calculate and interpret efficiency and financial stability ratios to evaluate asset management and gearing

How well does a business manage its assets and how exposed is it to debt?

Calculate and apply profitability and liquidity ratios to evaluate the performance and position of a business

How do ratios reveal profitability and liquidity from the statements?

Topic 3: Decision Making for a Business

Identify relevant costs and apply them to short-term decisions such as special orders and make-or-buy

Which costs actually matter when choosing between business options?

Explain and reconcile the difference between profit and cash flow to manage the financial sustainability of a business

Why can a profitable business run out of cash and how is the difference reconciled?

Apply cost-volume-profit analysis to calculate the break-even point and inform pricing and output decisions

How many units must a business sell to break even and reach a target profit?

Prepare and use budgets, especially the cash budget, to plan, control and make decisions for a business

How do budgets and cash flow forecasts help a business plan and stay solvent?

Topic 4: Applying Accounting Concepts

Distinguish business structures and explain how the regulatory framework influences accounting activities

How do different business structures and regulation shape the accounting information produced?

Explain the key accounting principles and ethical responsibilities that underpin reliable financial reporting

Which principles and ethical responsibilities govern how accounting information is prepared?

Apply accounting concepts, principles and analysis to new and unfamiliar business situations to recommend decisions

How do we apply accounting concepts and judgement to unfamiliar business situations?