49543880 CIMA Certificate Paper C3 Fundamentals of Business Mathematics Practice Revision
CIMA: Certificate Paper C2, FUNDAMENTALS OF · PDF fileCertificate Paper C2 FUNDAMENTALS OF...
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Transcript of CIMA: Certificate Paper C2, FUNDAMENTALS OF · PDF fileCertificate Paper C2 FUNDAMENTALS OF...
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In this February 2010 new edition
A user-friendly format for easy navigation
Regular fast 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
Certificate Paper C2
FUNDAMENTALS OF FINANCIAL ACCOUNTING
For assessments in 2010 and 2011
Study Text
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.
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First edition June 2006
Third edition February 2010
ISBN 9780 7517 8069 7 (previous edition 9780 7517 5280 9) e-ISBN 9780 7517 8397 1
British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library
Published by
BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA
www.bpp.com/learningmedia
Printed in the United Kingdom
Your learning materials, published by BPP Learning Media Ltd, are printed on paper sourced from sustainable, managed forests.
All our rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd.
We are grateful to the Chartered Institute of Management Accountants for permission to reproduce past examination questions. The suggested solutions in the exam answer bank have been prepared by BPP Learning Media Ltd.
BPP Learning Media Ltd 2010
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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 .....................................................................................................................................3 2 Assets and liabilities .................................................................................................................................................................13 3 An introduction to final accounts ..............................................................................................................................................27
Part B Accounting systems and accounts preparation 4 Sources, records and the books of prime entry .........................................................................................................................47 5 Ledger accounting and double entry .........................................................................................................................................61 6 From trial balance to financial statements .................................................................................................................................85 7 Preparing accounts: concepts and conventions ......................................................................................................................101 8 Accruals and prepayments ......................................................................................................................................................115 9 Non-current assets depreciation, revaluation and disposal..................................................................................................127 10 Bad debts and allowances for receivables ...............................................................................................................................153 11 Cost of goods sold and inventories.........................................................................................................................................165 12 Bank reconciliations................................................................................................................................................................185 13 Control accounts.....................................................................................................................................................................195 14 Accounting for sales tax..........................................................................................................................................................213 15 Accounting for payroll.............................................................................................................................................................223 16 Correction of errors.................................................................................................................................................................231
Part C Final accounts and audit 17 Preparation of sole traders accounts ......................................................................................................................................245 18 Limited liability companies .....................................................................................................................................................257 19 Incomplete records .................................................................................................................................................................277 20 The accounts of unincorporated organisations (income and expenditure accounts) ...............................................................297 21 Manufacturing accounts..........................................................................................................................................................313 22 The regulatory system.............................................................................................................................................................321 23 Internal and external audit.......................................................................................................................................................327
Part D Interpretation of accounts 24 Statements of cash flows ........................................................................................................................................................349 25 Interpreting company accounts ...............................................................................................................................................367 Question bank (computer-based assessment) ..................................................................................................................................393 Answer bank (computer-based assessment).....................................................................................................................................415 Index ...............................................................................................................................................................................................431 Review form and free prize draw
iv Introduction
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 CI