ACCA F3 (INT) Financial Accounting - 2010 - Study text - Emile Woolf Publishing
Подождите немного. Документ загружается.
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides 465
Paper F3 (INT)
Financial accounting
i
Index
A
Accounting regulation 33
Acconting policies for inventory 128
Account balances 76
Accounting
equation 57
estimates 304
depreciation 142
discounts received and discounts
allowed 91
dividends 241
goodwill 327
non-current intangible assets 169
revaluation 157
sales tax 97
packages 82
policy 48
standards 33
treatment of liabilities 208
treatment of sales tax 98
Accounts 64
Accruals
basis 43
concept 178
expense 44, 179
Accrued expenses and prepayments 188
Accrued income and prepaid income 189
Accumulated depreciation 141
Acquisition of tangible non-current
assets 149
Adjusting event 310
Admission of a new partner 327
Admitting a new partner 328
Aged receivables analysis 198
Amortisation of development
expenditure 172
Analysis columns 106
Analysis of expenses 301
Assets 25, 217
valuation 46
Authorised share capital 229
AVCO 130
B
Bad and doubtful debts: summary of the
rules 198
Bad debt 94, 192
recovered 198
writing off 193
Balance sheet 24, 27
simple representation 57
Bank account 71
Bank reconciliation 279
Bank reconciliation statement: format 280
Bank statements 279
Bonus issue 232, 234
advantages and disadvantages 235
Bookkeeping 64
rules for depreciation 142
system 16
Paper F3: Financial accounting (International)
466 Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
Books of 19
original entry 65
prime entry 65, 103
Borrowing money 58
Business documents 52
Business entity concept 42, 57
Business equation 62
Business structure 16
Business transactions 52, 57
Buying assets on credit 59
C
Called-up share capital 229
Capital account 317
Capital and revenue expenditure 139
Capital
expenditure 31
items 31
receipts 32
reserves 230
Capitalisation 31
Capitalisation issue 234
Carriage
inwards 127
outwards 127
Carrying amount 141
Cash account 71
Cash and cash equivalents 335
Cash book 65, 279
cash receipts 103
recording payments 104
Cash discounts 90
Cash equivalents 336
Cash flow statement 334
purpose 335
Cash in the statement of financial
position 284
Cash payment to settle a liability 59
Cash sales 53
cost of sales and profit 59
Changes in accounting estimates 304
Changes in accounting policy 304
Changes in the partnership agreement on
profit-sharing 325
Closing balance 76
Closing inventory 116
Closing off an account 76
Coding 83
Companies and financial reporting 225
Company: limited liability company 17
Company’s financial statements 296
Comparability 40
Completeness 40
Components of equity 245
Comprehensive income 25, 300
Computerised accounting system 79
advantages and disadvantages 81
main features 81
Contingent assets 215
Contingent liabilities 215
Contingent liabilities and contingent
assets:
recognising 216
the accounting rules 216
Continuous inventory
method 120
system 117
Contra entries 95
Control account 272, 277
Control account reconciliation 274
Conversion costs 126
Correcting errors 256, 272
Cost 125
Cost and benefit 41
Cost formulas for inventory 127
Cost of non-current assets: cost 139
Cost of sales 116
Credit 88
Credit balances for receivables 276
Credit note 54, 107
Credit sales 53
Credit sales, cost of sales and profit 60
Current account 317
Current and non-current items 291
Current assets 26, 138, 297
Current capital 316
Current cost 46
Current liabilities 26
Cut-off 294
D
Debit and credit entries 69
Debit balances for payables 276
Index
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides 467
Debit note 55
Deferred income 45
Delivery note 53
Depreciable amount 141
Depreciation 140, 141
as a percentage of cost 147
method 146, 165
of a re-valued asset 160
purpose 145
Development 171
costs 172
expenditure 171
expenditure as an intangible asset 172
Direct method 338, 349
Discount allowed 91
Discount received 91
Discounts 89
allowed 90, 94, 104
received 90
Disposal of a re-valued non-current asset:
gain or loss on disposal 163
Disposal of non-current assets 151
Dividends 61, 237, 239, 307
Double entry accounting system 253
book-keeping 69
Doubtful debts 192, 201
creating or increasing an allowance 195
making an allowance 194
reducing an allowance 195
Drawings 61, 226
Dual nature of transactions 64
Duality concept 64
E
Economic value 46
End-of-year adjustments for inventory 116
Entity 16
Equity 26, 228, 297
Equity dividends 239
Equity shares 228
Errors 253
Errors of commission 253
Errors of omission 253
Errors of principle 253
Errors of transposition 253
Events after the balance sheet date 310
the accounting rules (IAS 10) 311
Expenses 28
by their function 302
by their nature 302
F
Faithful representation 39
FIFO 129
Final dividend 240
Financial accounting 16
Financial information - qualities 38
Financial statements 24
users 21
Financial transactions: effect on the
accounting equation 57
Financing activities 359
First-in, first-out method (FIFO) 129
Fixed capital 316
Framework for the preparation and
presentation of financial statements 20
G
Gain on disposal 150
Gain or loss on disposal 150
General ledger 64
Going concern basis 45
Goods received note 55
Goodwill 169, 327
Gross profit 29
Gross profit percentage 372
Guaranteed minimum profit share 321
H
Historical cost 46
Historical cost accounting 47
I
IAS 1 Presentation of financial
statements 296, 297
Paper F3: Financial accounting (International)
468 Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
IAS2 Inventories 123, 127
IAS 7 Statements of cash flows 334
IAS 8 Accounting policies, changes in
accounting estimates and errors 303
IAS 10 Events after the balance sheet date 310
IAS 16 Property, plant and equipment
138, 141, 149, 157, 165
IAS 37 Provisions, contingent assets and
contingent liabilities 209
IAS 38 Intangible assets 170, 171
IASB Framework for the preparation
and presentation of financial
statements 21, 25, 26, 34
IASC Foundation 33
IFRIC 34
Imprest system 108
Income 28
Income statement 25, 27, 29, 199, 300
Income statement and the balance
sheet: links 62
Incomplete records
dealing with 366
meaning 366
nature 366
techniques 367
Increasing a provision 211
Indirect method 337
adjustments for working capital 343
Information technology 79
Intangible assets 169
Integrated software 82
Interest on drawings 322
Interest paid 341
Interim dividend 240
International Accounting Standards
(IASs) 33, 34
International Accounting Standards
Board (IASB) 33
International Accounting Standards
Committee (IASC) 21
International Financial Reporting
Interpretations Committee (IFRIC) 33
International Financial Reporting
Standards (IFRSs). 34
Inventory 26
count 121
Inventory and drawings 128
Investing activities 354
Investors 21
Irredeemable preference shares 238
Issued share capital 229
J
Journal 65
entries 74, 265
L
Ledger accounting system 16
Ledgers 19, 64
Lenders 22
Liabilities 26
non-current or current 297
Liability 208
Limited liability 224
Limited liability companies 224
advantages and disadvantages 225
Loan capital 243
Loan notes 243
Loss on disposal 150
Lower of cost or net realisable value 123
M
Main ledger 64, 65, 66, 67, 94
Maintenance and repair costs 140
Manual accounting systems 79
Mark-up percentage 372
Matching concept 43, 178
Materiality 38
Materials valuation methods and
inflation 132
Measurement of inventory 123
Memorandum cash and bank account 370
Memorandum control accounts 368
Missing inventory figure 373
Money measurement concept 43
N
Nature of expenses 301
Net book value (carrying amount) 141
Index
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides 469
Net profit 29
Net realisable value (NRV) 123, 124
Neutrality 39
Nominal ledger 64
Nominal value 229
Non-adjusting event 310
Non-current asset 26, 31, 138, 297
liabilities 26
register 149
Non-imprest systems 111
Notes to the financial statements 25
Notional interest on long-term capital 319
Notional salaries for partners 318
O
Opening and closing
balances 76
inventory 116
net assets 374
Opening capital 367
Operational cash flows 339, 349
Outstanding lodgements 280
Overdraft balances 282
Over-estimate or under-estimate of tax 305
Owners’ capital 25
P
Paid-up share capital 229
Part-exchange of an old asset 154
Partners: sharing the profits 318
Partners’ capital 316, 317
Partners’ current accounts 323
Partnership 17
accounts 316
Partnership accounts: special features 317
Partnerships 316
Payables ledger 65, 95
control account 272
Paying cash to buy another asset 58
Period-end method 118
Petty cash 108
accounting 110
book 65, 109
definition 108
Posting payments from the cash book 104
Posting receipts 103
Posting transactions 65
Preference dividends 239
Preference shares 228, 237
Prepaid expenses 178
prepayments 184
Prepayment 44
Present value 46
Prior period errors 304
Profit and cash flow 334
Profit-sharing ratio 318
Proposed dividends 299, 311
Proposed final dividend 241, 307
Provisions 208
Prudence 39
Purchases 88
cost 125
day book 65, 105
inventory 72
invoice 55
order 55
returns 55, 89
transactions 55
Purchases on credit 88
Purchases returns day book 65, 107
Q
Quality of financial statements 40
Quotation 55
R
Realisable value 46
Realisation concept 43
Receivables 26, 192
Receivables ledger 65, 66, 93
Receivables ledger control account 272
Recognition and measurement of
provisions 212
Reconciliation 272, 274, 279
of a statement with the supplier’s
ledger account 277
Redeemable preference shares 238
Reducing a provision 211
Paper F3: Financial accounting (International)
470 Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
Reducing balance method 147
Regulatory system for financial
accounting 33
Relevance 38
Reliability 39
Replacement cost 46
Research 171
Research and development expenditure 171
Research costs 171
Reserves 228, 230
Residual value 141
Retail method 127
Retained earnings 61
Revaluation
book-keeping entries 158
model 162
non-current assets 157
reserve 163
reserve account 157
Revenue expenditure 31
Revenue income 32
Revenue items 31
Revenue reserves 230
Rights issues 232
advantages and disadvantages 233
S
Sales 88
day book 65, 105
invoices 53
order 53
returns 54, 89
returns day book 65, 107
tax 97, 106
tax account 99
tax and discounts 101
tax arithmetic 99
transactions 53
Sales on credit 88, 192
Setting up a business 58
Settlement discounts 90
received 104
Settlement of a provision 210
Settlement value 46
Share capital 228, 229
Share premium account 231
Sharing profits (or losses) 317
Simple income statement 28
Sole trader 16, 224
Sole trader’s financial statements 288
Standards Advisory Council (SAC) 33, 34
Statement of
cash flows 25
changes in equity 25
changes in equity 241, 245
comprehensive income 25, 299
financial position 24, 25, 27
format 296
financial position for a partnership 317
Statements 54
Straight-line method 146
Substance over form 39
Supplier statements 277
Suspense account 260
T
T accounts 69
Tangible and intangible assets 138
Tax authorities 98
Tax collectors 97
Tax paid 341
Taxation in the balance sheet 306
Taxation in the income statement 305
Taxation on profits 305
Timeliness 41
Timing differences 280
Total comprehensive income 300
Trade discount 89
Trade payables 26
Transactions between the year-end
and the inventory count 121
Transactions with owners in their
capacity as owners 246
Trial balance 76, 252, 260
Trial balance to income statement 288
True and fair view/faithful
representation 41
U
Understandability 38
Index
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides 471
Unknown entry 264
Unpresented cheques 280
Useful life 141
V
Valuation of inventory 123
Value added tax 97
Value of goodwill 327
VAT 53
Vertical format 27, 28
W
Weighted average cost 127
Weighted average cost (AVCO) method 130
Working capital 292
Working capital adjustments 341
Paper F3: Financial accounting (International)
472 Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
For Distance Learning Programmes
please visit our website at:
www.ewipublishing.com
ACCA
PublishingPublishing
F3 INT Study Text - Financial Accounting
A well-written and focused text, which will prepare you for the examination and which does not
contain unnecessary information.
• Comprehensive but concise coverage of the examination syllabus
• A focus on key topic areas identified by specialist tutors
• Simple English with clear and attractive layout
• A large bank of practice questions which test knowledge and application for each chapter
• A full index
• The text is written by Emile Woolf International’s Publishing division (EWIP). The only publishing company
focused purely on the ACCA examinations.
• EWIP’s highly experienced tutors / writers produce study materials for the professional examinations of the
ACCA.
• EWIP’s books are reliable and up-to-date with a user-friendly style and focused on what students need to know
to pass the ACCA examinations.
• EWIP’s association with the world renowned Emile Woolf Colleges means it has incorporated student feedback
from around the world including China, Russia and the UK.