Financial Accounting Exam- subjects and requirement.

1) Financial Statement: - Balance Sheet

- Income Statement
- Cash Flow Statement
- Accruals, matching conventions & going-concern
- Liguidity and solvency(difference)
- Operatating cash flow and operating expenditures(difference)
- Capex

2) Inventories : - How to evaluate (VAT at acquisition)?

- Exit/ disposal of the inventories/sale (VAT at sale)
- Additional cost at acquisition
- Things you should never capitalize in the cost of inventories
- LIFO, FIFO, WAC
3) Non-current assets: - How to evaluate (at acquisition , VAT related)?
- Additional costs to be capitalize/additional cost not to be
capitalised
- Depreciation & amortisation
- Methods of depreciation( SL, DD, Units of production)
- Impact of depreciation on profitability, taxation , others
4) Provisions - scope/role
- Impact on financial statements at inception
- Impact on financial statements at cancellation
5) Liabilities : - How to evaluate liabilities (current and non-current)
- Different subcategories of liab and their impact within financial
statements .(accounts payable, note payables, salary payables,
deffered revenues, bank loans)
6) Equity - capital of share companies (shar issue at par value and at different
value than par – share premium)
- Reserves: scope, how to record reserves
- Dividends: scope,distribution, payment
7) Financial analysis: Liquidity, solvency, profitablity ratios: how to compute, meaning,
benchmark analysis