2018 Exam Syllabus

Practice professional ethics when working with clients, suppliers, colleagues and others:

• Integrity and honesty
• Objectivity
• Professional competence, due care and diligence
• Privacy and confidentiality
• Professional behaviour, separating personal duties from business
• Adherence to organizational codes of practice and regulations
• Working within your own professional experience, knowledge and expertise

Practice professional ethics when working with clients, suppliers, colleagues and others with regards to:

• Characteristics of and nature of liability for sole proprietorships, partnerships, corporations and non-profits.
• Characteristics of registered charities.

Identify and explain the concepts of:

Demonstrate ability to calculate the following:

• Purpose and flow of documents between buyer and seller for both cash and credit transactions.
• Purpose and need to record petty cash transactions.
• Purpose of receipts and disbursements transactions.

Understand and explain different methods for calculating sales tax such as:

• Cash basis
• Accrual basis
• Based on the seller’s location
• Based on the location where the item was installed or serviced
• Based on the buyer’s delivery location (streamlined sales tax)

Demonstrate ability to:

• Reconcile vendor statements with the detailed listing of open accounts payable by vendor and the general ledger trial balance.

In a computerized system:

• Compare individual items on the bank statement with those in the ledger.
• Update the ledger.
• Resolve discrepancies and evaluate timing differences between the records of the bank and the general ledger.
• Prepare the bank reconciliation report.

Identify and explain the concepts of:

• Economic entity
• Dual aspect
• Going concern
• Accounting cost
• Consistency

Demonstrate ability to calculate the following:

• How transactions entered will impact different types of accounts in a computerized system.
• How to make entries into computerized accounting system from source documents.
• The use and set-up of control accounts in the ledgers.
• Apply the best methods for matching paperwork, filing paper and digital documents.

Demonstrate ability to:

• Calculate amortization on a fixed asset using both straight line and declining balance method.
• Calculate the original cost price of an asset given net book value and amortization rates and number of years of amortization.
• Identify the need for amortization.
• Calculate amortization expense, accumulated amortization, and reconciling to the general ledger.
• Account for changes in the account detailing the cost of acquired assets and the related accumulated amortization.
• Prepare the relevant journal entry to adjust the balance to match the supporting analysis of the detailed amortization report.

In both a manual and computerized system, be able to:

• Identify the original cost of the asset disposed.
• Identify and record all disposal costs and proceeds in the appropriate accounts.
• Calculate and determine the cumulative amortization to date on a disposed asset.
• Prepare the supporting analysis which documents the correct net book value of the asset as of the sale date, the cost to dispose of the asset, and the gain/loss on disposal of the asset.
• Make relevant journal entries to record the disposal.

Identify and explain the concepts of:

• Opening and closing inventory, including valuing inventory at the lower of cost or market accruals.
• Prepaid expenses, including dealing with the relevant entries in the following periods.
• Provision for doubtful accounts

Be able to:

• Distinguish between retained earnings and the books at year-end
• Calculate contributed capital.
• Define shareholders’ equity.
• Account for the issue of shares and debt.
• Account for dividends paid.
• Enter and understand the closing adjustments, as prepared by the company’s tax accountant.

Be able to:

• Prepare general ledger accounts to determine missing values for sales and purchases using mark-up and margin, expenses and draws.
• Identify and reclassify capital expenditures to the proper general ledger accounts and also record them in the fixed asset software application.

Be able to:

• Determine the opening value of capital through the accounting equation.
• Determine bank and cash balances
• Prepare adjusting entries and supporting analyses for accrued expenses and prepaid expenses.
• Interpret financial reporting results