2023 POA Cheat Sheet N level

1 POA Cheat Sheet GCE N LEVEL CONTENT PAGE CHAPTER TOPIC PAGE 1 INTRODUCTION TO ACCOUNTING ……………………………………………………………... 2 2 ACCOUNTING INFORMATION SYSTEM ………………………………………………………. 5 3 ELEMENTS OF FINANCIAL STATEMENTS AND ACCOUNTING EQUATION …… 7 4 DOUBLE-ENTRY RECORDING ……………………………………………………………………. 9 5 TRIAL BALANCE AND FINANCIAL STATEMENTS ……………………………..………… 12 6 REVENUE AND OTHER INCOME ………………..………………………………………………. 18 7 COST OF SALES AND OTHER EXPENSES …………………………………….………………. 22 8 CASH ………………..……………………………………………………………………………………….. 26 9 INVENTORIES ……………..…………………………………………………………………………….. 30 10 TRADE RECEIVABLES ……………………….………………………………………………………. 34 11 NON-CURRENT ASSETS …………….………………………………………………………………. 38 12 TRADE PAYABLES ………………..…………………………………………………………………… 44 13 LONG-TERM BORROWINGS ……………………………………………………………………….. 46 14 EQUITY ……………………....…………………………………………………………………………….. 49 15 CORRECTION OF ERRORS ……………………..…………………………………………………… 53 17 SCENARIO-BASED QUESTIONS ………………………………………………………………….. 56 With love by West Spring Sec POA Unit ☺ (Updated June 2023) © All rights reserved. This set of notes, specially compiled for students’ revision, or any portion thereof may not be reproduced or used in any manner whatsoever. It is meant as supplementary reading material. Kindly alert Mrs Juliet if you spot typo error.

2 CHAPTER 1: INTRODUCTION TO ACCOUNTING • Trading business buys from suppliers and sells goods to customers. Service business provides services to customers. • Stakeholders are groups of people who will make use of information about the business to make decisions. • Role of accounting is to provide accounting information for stakeholders to make informed business decisions. • Role of accounting: businesses require accounting information for decision-making. Accounting is an information system that provides accounting information for stakeholders to make informed decisions regarding the management of resources and performance of businesses. • Role of accountant: accountants prepare and provide accounting information for decision making. Accountants set up an accounting information system and become stewards of businesses.

3 • Stewards are responsible for managing the resources of the business on behalf of the owner(s). • Two professional ethics in accounting: integrity (straightforward and honest in all professional relationships) and objective (not let bias, conflict of interest or undue influence of others override his or her professional judgement). • It is important for accountants to uphold professional ethics as stakeholders rely on them to prepare and provide accurate accounting information for informed decision-making. They will not misled users into making poor decisions. • Stakeholders rely on both accounting and non-accounting information that are not sh