1 The fundamentals of accounting

This section introduces the subject by explaining the difference between book-keeping and accounting. The role of accounting in providing information and the purposes of measuring business profit and loss are also explored. Basic accounting terms and the accounting equation are introduced.

2 Sources and recording of data

The core topic of this section is the double entry system of book-keeping and how this is applied in the preparation of ledger accounts. The division of the ledger is considered. Business documents and their use as sources of information are also included. Consideration is given to the procedures for processing information in books of prime entry.

3 Verification of accounting records

This section concentrates on the use of trial balances, bank reconciliation statements and control accounts as means of verifying accounting records. The procedures for the correction of errors are also covered.

4 Accounting procedures

Within this section, consideration is given to the importance of distinguishing between capital and revenue expenditure and receipts. Non-current assets are further explored in terms of accounting for depreciation and disposals. Procedures to record adjustments for accruals and prepayments, irrecoverable debts, provision of doubtful debts and the recovery of debts written off are included. Inventory valuation, and its impact on financial statements, is also covered.

5 Preparation of financial statements

The focus of this section is the preparation of financial statements, including year-end adjustments, for different types of businesses (sole traders, partnerships and limited companies). Consideration is also given to the financial statements of clubs and societies and manufacturing businesses. The procedures employed when only incomplete records are available are also covered.

6 Analysis and interpretation

This section introduces the calculation and the interpretation of the main accounting ratios. The use of ratios in inter-firm comparison is also included. Consideration is also given to the uses of accounting information by interested parties. The limitations of accounting statements are also explored.

7 Accounting principles and policies

The main accounting principles are introduced together with how they are applied in accounting records and statements. Consideration is also given to the influence of international accounting standards and the selection of accounting policies.

Paper 1 (1 hour 15 minutes) - 30% Multiple-choice questions ,Questions will be based on all syllabus content , Externally assessed

Paper 2 (1 hour 45 minutes) - 70% Questions will be based on all syllabus content, Externally assessed

Cambridge IGCSE Certificates are general qualifications that enable candidates to progress either directly to employment, or to proceed to further qualifications. Candidates who are awarded grades C to A* in Cambridge IGCSE Accounting are well prepared to follow courses leading to Cambridge International AS and A Level Accounting, or the equivalent.