Principles of accounts Essay

1. Explain the concept of accounting; concept of â€Å"Accounting† and â€Å"Principles of Accounting† 2. State the purpose of accounting; Accounting as a business practice – the purpose of Accounting. 3. Identify the users of accounting information; Internal and external users Accounting information and their needs 4. Outline the distinguishing features of various types of business organizations; Types of business organizations: (i) Sole-Traders (ii) Partnerships (iii) Corporations (Limited Liability companies) (iv) Cooperatives (v) Non-Profit Organizations 5. Identify the main financial statements prepared by various business organizations; Financial Statements – Income statement, Trading and Profit & Loss A/C, Income and Expenditure A/C, Balance sheets, Cash Flow Statements. (Teachers are not expected to teach how to prepare the cash flow statements but it should be identified as one of the financial statements which must be prepared by corporations). 6. Describe the accounting cycle; The Accounting cycle with its diagrammatic representation. 7. Outline the concepts and conventions that guide the accounting process; Accounting concepts and conventions – principles which guide the accounting process: accrual and matching concept; prudence (conservation) concept; consistency concept; separate entity concept. 8. Assess the role and impact of technology on the accounting process; (a) accounting processes which could be readily preformed by the use of the computer, for example: payroll, stock control, debtors’ and creditors’ schedules. (b) What are the software currently being used in Accounting e.g. Peachtree, SimplyAccounting (c) Advantages and disadvantages of using the computer in accounting. CXC CSEC Principles of Accounts Exam Guide Section 1: Introduction to Principles of Accounts SPECIFIC OBJECTIVES The students should be able to: CONTENT 1. Explain the concept of accounting; concept of â€Å"Accounting† and â€Å"Principles of Accounting† 2. State the purpose of accounting; Accounting as a business practice – the purpose of Accounting. 3. Identify the users of accounting information; Internal and external users Accounting information and their needs 4. Outline the distinguishing features of various types of business organizations; Types of business organizations: (i) Sole-Traders (ii) Partnerships (iii) Corporations (Limited Liability companies) (iv) Cooperatives (v) Non-Profit Organizations 5. Identify the main financial statements prepared by various business organizations; Financial Statements – Income statement, Trading and Profit & Loss A/C, Income and Expenditure A/C, Balance sheets, Cash Flow Statements. (Teachers are not expected to teach how to prepare the cash flow statements but it should be identified as one of the financial statements which must be prepared by corporations). 6. Describe the accounting cycle; The Accounting cycle with its diagrammatic representation. 7. Outline the concepts and conventions that guide the accounting process; Accounting concepts and conventions – principles which guide the accounting process: accrual and matching concept; prudence (conservation) concept; consistency concept; separate entity concept. 8. Assess the role and impact of technology on the accounting process; (a) accounting processes which could be readily preformed by the use of the computer, for example: payroll, stock control, debtors’ and creditors’ schedules. (b) What are the software currently being used in Accounting e.g. Peachtree, SimplyAccounting (c) Advantages and disadvantages of using the computer in accounting.