Tag Archives: LCCI

LCCI Book-keeping and Accounts Level 2 Syllabus

16 五月

Bookkeeping Accs Level 2 Finalised Syllabus MAY 2008

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Classificiation of accounting ratios

17 三月

Accounting Ratio Unit Profitability Liquidity Management efficiency
Gross profit ratio     % Y    
Net Profit ratio     % Y    
Stock turnover rate times OR day, month Y   Y
Current ratio x:y   Y  
Quick ratio (Acid test ratio)     x:y   Y  
Return on capital employed     % Y    
Debtor collection period   day, month     Y
Creditor payment period     day, month     Y

Accounting prinicples (MR MA! HE Q C’S PiG!)

17 三月

The purpose is to make accounting information more objective, uniform and useful to different users.

  1. Entity
  2.  Historical cost
  3. Going concern
  4. Stable monetary measures
  5. Accrual
  6. Realisation
  7. Matching
  8. Prudence
  9. Materiality
  10. Consistency
  11. Quantifiability

Entity

A business is treated as an entity separate from its owner. Only transactions affecting the business should be recorded in the books of the business.

Historiacal cost

The assets of a frim are valued at their original cost of purchases or production. Any changes in their market value should be ignored.

Going concern

A business will continue to operate for the foreseeable future. Assets of a business should therefore be valued at historical cost.

Stable monetary measure

The assumption is that the value of money is constatn, ignoring the effects of inflation or deflation.

Accrual

Revenues should be recognised when earned. And, expenses should be recognised when incurred, and not when money is received or paid.

Realisation

It specifies the point in time at which revenue should be recognised and recorded in the books.

Matching

it states that revenue should be linked with its relevant expense or cost in the same period.

Prudence

It ensures that the net assests and profits of a business are not overstated.

Materiality

It is used to judge what sorts of transactions or items are significant and their classification in the financial statements.

Consistency

A firm shoul keep using the same accounting policy or method for similar items. A change is allowed only if it can give a more accurate view of a business.

Quantifiability

Accounting is concerned only with transactions measurable in units of money.

給你一條選擇題 LCCI lvl2/HKIAAT/BAFS

16 三月

1. Sales of Equipment entered in the Sales Account is an example of an error of:

A. original entry

B. omission

C. commission

D. principle

2. What of the following errors would be corrected through the Suspense Account?

A. Motor Expenses was debited to the Motor Vehicle Account

B. Cheque payment of $1000 for MV was not entered in the bank account

C. A cheque paid for lighting was debited to the heating account

D. A Credit sales of $500 was entered in the books as $5000

Ch16: Errors and the Use of a Suspense Account

給你一條選擇題

15 三月