CSEC Principles of Accounts Syllabus Review

These flashcards cover key concepts and objectives from the CSEC Principles of Accounts syllabus to aid in exam preparation.

What is the purpose of accounting?

The purpose of accounting is to provide relevant information to manage or use economic resources.

What are the main financial statements prepared by various business organizations?

Income statement, Balance Sheets, Cash Flow Statements.

What is the accounting cycle?

The accounting cycle is a series of steps that includes recording, classifying, and summarizing financial transactions.

What is a classified balance sheet?

A classified balance sheet organizes assets and liabilities into current and long-term categories.

What distinguishes capital expenditure from revenue expenditure?

Capital expenditure is for acquiring or improving fixed assets, while revenue expenditure is for day-to-day operational costs.

What is the significance of the trial balance?

The trial balance is used to ensure that total debits equal total credits, helping to identify errors in the accounts.

Identify two methods of inventory valuation.

First in, First out (FIFO) and Last in, First out (LIFO).

What is the function of control accounts in accounting?

Control accounts summarize the total amounts owed to or by customers and suppliers, helping to simplify ledger management.

Define a partnership business.

A partnership is a business owned by two or more individuals who share profits and losses.

What is the role of technology in the accounting process?

Technology enhances accuracy and efficiency in record-keeping, data processing, and financial reporting.