ACA [ICAEW] - ACCOUNTING.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20[ICAEW]%2
ACA [ICAEW] - ACCOUNTING
1. Books of Original Entry: 1. Cash Book
2. Sales Day Book (Credit Sales)
3. Purchases Day Book (Credit Purchases)
4. Petty Cash Book
5. Journal Book
6. The Payroll
2. Statement of Financial Position: SOFP
- Snapshot of assets controlled, liabilities owned and capital at a point in time
3. Statement of Profit and Loss: Income and expenses over a period of time
4. The Business entity concept: Business transactions should be kept separate
from the personal transaction of the owner
5. Qualitative characteristics of financial information: Two fundamental con-
cepts
1. Relevance [Assists users in evaluating past and predicting future events + Mate-
riality]
2. Faithful Representation [Neutral; Free from Error; Complete]
1/5
1 of 13 12/16/2024, 5:01
,ACA [ICAEW] - ACCOUNTING.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20[ICAEW]%2
Four Enhancing Characteristics
1. Verifiability [Can be proven]
2. Timeliness [In time to influence decisions of users]
3. Understandability [Readily understandable by people with reasonable knowledge]
4. Comparability [Consistency]
6. Accrual basis of accounting: - Items recognized as assets, liabilities, equity,
income and expenses (elements of FS) when they satisfy definitions and recognition
criteria for those elements in conceptual framework
- Transactions recognized when they occur
!! Income earned must be matched against the expenditure incurred in earning it
7. Accrual Concept: Effects of transactions reognized when they occur - not when
cash received/paid
8. IFAC Code of Ethics: 1. Integrity
2. Objectivity
3. Professional Competence and Due Care
4. Confidentiality
5. Professional Behavior
2/5
2 of 13 12/16/2024, 5:01
ACA [ICAEW] - ACCOUNTING
1. Books of Original Entry: 1. Cash Book
2. Sales Day Book (Credit Sales)
3. Purchases Day Book (Credit Purchases)
4. Petty Cash Book
5. Journal Book
6. The Payroll
2. Statement of Financial Position: SOFP
- Snapshot of assets controlled, liabilities owned and capital at a point in time
3. Statement of Profit and Loss: Income and expenses over a period of time
4. The Business entity concept: Business transactions should be kept separate
from the personal transaction of the owner
5. Qualitative characteristics of financial information: Two fundamental con-
cepts
1. Relevance [Assists users in evaluating past and predicting future events + Mate-
riality]
2. Faithful Representation [Neutral; Free from Error; Complete]
1/5
1 of 13 12/16/2024, 5:01
,ACA [ICAEW] - ACCOUNTING.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20[ICAEW]%2
Four Enhancing Characteristics
1. Verifiability [Can be proven]
2. Timeliness [In time to influence decisions of users]
3. Understandability [Readily understandable by people with reasonable knowledge]
4. Comparability [Consistency]
6. Accrual basis of accounting: - Items recognized as assets, liabilities, equity,
income and expenses (elements of FS) when they satisfy definitions and recognition
criteria for those elements in conceptual framework
- Transactions recognized when they occur
!! Income earned must be matched against the expenditure incurred in earning it
7. Accrual Concept: Effects of transactions reognized when they occur - not when
cash received/paid
8. IFAC Code of Ethics: 1. Integrity
2. Objectivity
3. Professional Competence and Due Care
4. Confidentiality
5. Professional Behavior
2/5
2 of 13 12/16/2024, 5:01
