NTS NAT-ICOM Accounting Syllabus

Accounting syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Accounting in NTS NAT-ICOM, not a summary of it.

1. 1

   Fundamentals of Accounting

   4 topics

   • Accounting Concepts and Conventions
   • Accounting Equation
   • Double Entry System
   • Types of Accounts and Rules of Debit and Credit
2. 2

   Books of Original Entry

   4 topics

   • Journal and Journalizing
   • Ledger and Posting
   • Subsidiary Books
   • Cash Book
3. 3

   Trial Balance and Errors

   4 topics

   • Preparation of Trial Balance
   • Types of Errors
   • Rectification of Errors
   • Suspense Account
4. 4

   Adjustments and Final Accounts

   4 topics

   • Adjusting Entries
   • Depreciation
   • Trading and Profit and Loss Account
   • Balance Sheet
5. 5

   Bank Reconciliation and Special Accounts

   3 topics

   • Bank Reconciliation Statement
   • Bills of Exchange
   • Capital and Revenue Items

Accounting flashcards for NTS NAT-ICOM

22 of 63 cards from the Accounting deck — real questions with worked answers.

1. What is accounting?

   The process of identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity to interested users.

2. State the Business Entity (Separate Entity) Concept.

   The business is treated as a separate and distinct entity from its owner(s); only the business's transactions are recorded, and the owner's personal transactions are excluded.

3. State the Going Concern Concept.

   It is assumed that the business will continue to operate for an indefinite/foreseeable future and has no intention to liquidate or curtail its operations.

4. State the Money Measurement Concept.

   Only transactions that can be expressed in monetary terms are recorded in accounting; non-monetary facts (e.g., staff morale) are not recorded.

5. State the Cost (Historical Cost) Concept.

   Assets are recorded in the books at their original purchase (acquisition) cost, not at market value.

6. State the Dual Aspect (Duality) Concept.

   Every transaction has two aspects — a debit and an equal credit — which is the basis of the double entry system and the accounting equation.

7. State the Accounting Period Concept.

   The life of a business is divided into fixed periods (usually one year) so that financial performance and position can be measured and reported periodically.

8. State the Matching Concept.

   Expenses incurred in an accounting period should be matched against (set off against) the revenues earned in the same period to determine correct profit or loss.

9. State the Realisation (Revenue Recognition) Concept.

   Revenue is recognised/recorded when it is earned (e.g., when goods are sold or services rendered), not necessarily when cash is received.

10. State the Accrual Concept.

    Revenues and expenses are recorded when they are earned or incurred, regardless of when cash is actually received or paid.

11. What is the Convention of Conservatism (Prudence)?

    Anticipate no profits but provide for all possible losses; do not overstate income/assets and do not understate expenses/liabilities (e.g., provide for doubtful debts).

12. What is the Convention of Consistency?

    Accounting methods and policies once adopted should be applied consistently from period to period to allow meaningful comparison of results.

13. What is the Convention of Full Disclosure?

    All material and relevant financial information should be fully and fairly disclosed in the financial statements so users can make informed decisions.

14. What is the Convention of Materiality?

    Only items that are significant enough to influence the decisions of users need to be recorded/disclosed separately; insignificant items may be ignored or merged.

15. Write the basic Accounting Equation.

    Assets = Liabilities + Capital (Owner's Equity).

16. Express the Accounting Equation in terms of Capital.

    Capital = Assets − Liabilities.

17. How is the accounting equation expanded to include profit elements?

    Assets = Liabilities + Capital + Revenues − Expenses − Drawings.

18. What is the effect on the accounting equation when goods are purchased for cash?

    One asset (stock) increases and another asset (cash) decreases by the same amount; total assets and the equation remain unchanged.

19. What is the effect on the accounting equation when the owner introduces additional cash as capital?

    Asset (cash) increases and Capital increases by the same amount.

20. What is the Double Entry System?

    A system of bookkeeping in which every transaction is recorded in (at least) two accounts — one debited and one credited — with equal debit and credit amounts.

21. State the fundamental rule of the double entry system.

    For every debit there must be an equal and corresponding credit (Debit = Credit).

22. Name the three types of accounts under the traditional classification.

    Personal accounts, Real accounts, and Nominal accounts.

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