Develop knowledge of double-entry accounting techniques and preparation of basic financial statements for sole traders, partnerships, companies and not-for-profit entities. Includes financial statement interpretation and key accounting ratios.
Financial Accounting is the foundation of the entire ICAG qualification. It introduces candidates to the principles and mechanics of double-entry bookkeeping, the preparation of financial statements for a wide range of entity types, and the interpretation of financial data. You will master the accounting equation, ledger accounts, trial balance preparation, and period-end adjustments — skills that underpin every subsequent paper in the qualification. This paper is assessed entirely on technical accuracy and the ability to present financial information clearly and correctly.
The accounting equation, ledger accounts, journals, and the mechanics of recording transactions accurately.
Preparing trial balances, accounting for accruals, prepayments, depreciation, bad debts, and inventory adjustments.
Income statements, statements of financial position, and statements of cash flows for owner-managed businesses.
Capital and current accounts, profit appropriation, admission of partners, retirement, and dissolution.
Preparation of income statements and statements of financial position for limited liability companies.
Reconstructing accounts from partial data using control accounts and mark-up/margin techniques.
Receipts and payments accounts, income and expenditure accounts for clubs and societies.
Liquidity, profitability, efficiency, and gearing ratios — calculating and commenting on financial performance.
This paper rewards precision. Practice laying out journal entries and financial statements in the correct format repeatedly — examiners award marks for presentation as well as correct figures.
Graduate Accountant
Accounts Assistant
Finance Analyst
Bookkeeper
Audit Trainee
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