YPIP Accounting and Finance Fundamentals Syllabus

Accounting and Finance Fundamentals syllabus — full chapter and topic list

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

1. 1

   Principles of Accounting

   4 topics

   • Accounting Concepts and Conventions
   • Double-Entry System
   • Journal, Ledger and Trial Balance
   • Accounting Equation
2. 2

   Financial Statements

   4 topics

   • Income Statement
   • Balance Sheet
   • Cash Flow Statement
   • Adjusting and Closing Entries
3. 3

   Financial Analysis

   3 topics

   • Ratio Analysis
   • Working Capital Management
   • Break-Even Analysis
4. 4

   Corporate Finance

   5 topics

   • Time Value of Money
   • Capital Budgeting
   • Cost of Capital
   • Sources of Finance
   • Risk and Return
5. 5

   Cost and Management Accounting

   3 topics

   • Cost Classification
   • Budgeting and Variance Analysis
   • Marginal Costing
6. 6

   Banking Operations and Products

   5 topics

   • Deposit and Loan Products
   • Negotiable Instruments
   • Letters of Credit and Trade Finance
   • Anti-Money Laundering and KYC
   • Basel Accords and Capital Adequacy

Accounting and Finance Fundamentals flashcards for YPIP

20 of 52 cards from the Accounting and Finance Fundamentals deck — real questions with worked answers.

1. What is the going concern concept in accounting?

   The assumption that a business will continue to operate for the foreseeable future and is not about to be liquidated, so assets are recorded at cost rather than break-up/liquidation value.

2. What does the accrual (matching) concept require?

   Revenues are recognized when earned and expenses when incurred, regardless of when cash is received or paid; expenses are matched against the revenues they help generate in the same period.

3. State the prudence (conservatism) convention.

   Anticipate no profits but provide for all possible losses; recognize liabilities/expenses as soon as probable but income only when reasonably certain.

4. What is the money measurement concept?

   Only transactions and events that can be expressed in monetary terms are recorded in the accounts; non-monetary items (e.g., staff morale) are excluded.

5. What is the business entity (separate entity) concept?

   The business is treated as a unit separate and distinct from its owner(s); owner's personal transactions are not mixed with the business's books.

6. What does the consistency convention mean?

   Once an accounting method or policy is chosen, it should be applied consistently from period to period so financial statements remain comparable over time.

7. What is the dual aspect concept?

   Every transaction has two equal and opposite effects (a debit and a credit), forming the basis of the double-entry system and the accounting equation.

8. What is the materiality convention?

   Only items significant enough to influence the decisions of users need strict accounting treatment/disclosure; trivial items can be treated practically.

9. In the double-entry system, what is the golden rule for personal accounts?

   Debit the receiver, credit the giver.

10. In the double-entry system, what is the golden rule for real (asset) accounts?

    Debit what comes in, credit what goes out.

11. In the double-entry system, what is the golden rule for nominal (income/expense) accounts?

    Debit all expenses and losses, credit all incomes and gains.

12. Which types of accounts normally carry a debit balance?

    Assets, expenses, and drawings normally carry debit balances.

13. Which types of accounts normally carry a credit balance?

    Liabilities, capital (equity), and income/revenue normally carry credit balances.

14. What is a journal in accounting?

    The book of original (prime) entry in which transactions are first recorded chronologically as journal entries, showing accounts debited and credited with a narration.

15. What is a ledger?

    The book of final entry containing individual accounts where journal entries are posted and classified, enabling the balance of each account to be determined.

16. What is posting in the accounting cycle?

    The process of transferring entries from the journal (book of original entry) to the relevant accounts in the ledger.

17. What is a trial balance and its main purpose?

    A statement listing all ledger account balances (debits and credits) on a given date; its main purpose is to check the arithmetical accuracy of the books by confirming total debits equal total credits.

18. Name two errors that a trial balance will NOT detect.

    Errors of omission, errors of commission, errors of principle, compensating errors, and errors of original entry — none of these affect the debit-credit equality.

19. State the basic accounting equation.

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

20. Rewrite the accounting equation to show owner's equity.

    Owner's Equity = Assets − Liabilities.

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