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PIPFA Basic Accounting Flashcards
51 question-and-answer cards covering Basic Accounting as it is examined in PIPFA. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Basic Accounting deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is a ledger and what is posting?
The ledger is the book of accounts containing all individual accounts; posting is transferring entries from the journal to the relevant ledger accounts.
What is a narration in a journal entry?
A brief explanation written beneath each journal entry describing the nature of the transaction.
What is a compound (combined) journal entry?
A single journal entry that involves more than two accounts (more than one debit and/or more than one credit) for transactions occurring on the same date.
What is the sales day book (sales journal) used to record?
Only credit sales of goods in which the business normally deals; it excludes cash sales and sales of assets.
What is the purchases day book (purchases journal) used to record?
Only credit purchases of goods meant for resale; it excludes cash purchases and purchases of fixed assets.
Which subsidiary books record returns of goods?
Sales returns (returns inwards) book records goods returned by customers; purchases returns (returns outwards) book records goods returned to suppliers.
What is a cash book and its dual role?
A book of original entry that records all cash and bank receipts and payments; it serves both as a journal and as a ledger account for cash and bank.
What is a three-column cash book?
A cash book with three amount columns on each side: discount, cash, and bank; the discount columns are memorandum totals posted to the discount accounts.
What is a contra entry in the cash book?
An entry affecting both cash and bank columns of the cash book (e.g. cash deposited into bank or cash withdrawn from bank), marked with the letter 'C'.
What is petty cash and the imprest system?
Petty cash is a small fund for minor expenses. Under the imprest system a fixed float is set; periodically the exact amount spent is reimbursed, restoring the float to its original level.
What is a bank reconciliation statement?
A statement that reconciles the balance shown by the cash book with the balance shown by the bank statement, explaining the causes of the difference between them.
List the main causes of difference between the cash book and bank statement balances.
Unpresented (outstanding) cheques, uncredited (deposits in transit) cheques, bank charges/interest, direct debits/credits and standing orders, dishonoured cheques, and errors in either record.
What is an unpresented cheque and its effect on the reconciliation?
A cheque issued and recorded in the cash book but not yet presented/cleared by the bank; it makes the bank statement balance higher than the cash book, so it is added back when starting from the cash book balance is reversed (deducted from bank balance).
What is an uncredited cheque (deposit in transit)?
A cheque received, recorded in the cash book and deposited but not yet credited by the bank; it makes the cash book balance higher than the bank statement balance.
Starting from the bank statement balance, how are unpresented and uncredited cheques treated?
Deduct unpresented cheques and add uncredited deposits to the bank statement balance to arrive at the cash book balance.
What is a trial balance?
A list of all ledger account balances (debits and credits) on a particular date, prepared to check the arithmetical accuracy of the double-entry postings.
Does an agreed (balanced) trial balance prove the books are free from all errors?
No. It only proves arithmetical/double-entry accuracy; certain errors (omission, commission, principle, compensating, original entry, complete reversal) do not affect its agreement.
Name and define errors that do NOT affect trial balance agreement.
Error of omission, error of commission, error of principle, compensating errors, error of original entry (wrong amount in both), and error of complete reversal.
Distinguish an error of principle from an error of commission.
Error of principle: a transaction is recorded in the wrong class/type of account (e.g. capital expenditure as revenue). Error of commission: recorded in a wrong account of the same class (e.g. wrong customer's account).
What is a suspense account?
A temporary account opened to record the difference when a trial balance does not agree (or to hold an entry whose correct account is uncertain) until the errors are found and corrected.
What is an accrued expense (accrual) and how is it treated?
An expense incurred but not yet paid by period end; it is added to the expense in the profit and loss account and shown as a current liability in the balance sheet.
What is a prepaid expense (prepayment) and how is it treated?
An expense paid in advance for a future period; it is deducted from the expense in the profit and loss account and shown as a current asset in the balance sheet.
Define depreciation and state the straight-line and reducing-balance formulas.
Depreciation is the systematic allocation of the cost of a fixed asset over its useful life. Straight-line = (Cost − Residual value) / Useful life. Reducing-balance = fixed % × net book value (written-down value) each year.
What is a bad debt and a provision (allowance) for doubtful debts?
A bad debt is a receivable proven irrecoverable and written off as an expense. A provision for doubtful debts is an estimated allowance against receivables that may not be collected; only the increase/decrease in the provision is charged/credited to profit and loss, and the provision is deducted from debtors in the balance sheet.
What this deck covers
The Basic Accounting deck follows the PIPFA Basic Accounting syllabus — 8 chapters and 20 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 6.4 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 170 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Basic Accounting flashcards FAQ
How many Basic Accounting flashcards are in this PIPFA deck?
51 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these PIPFA flashcards free?
Yes. The preview here is free to read with no signup, and the full 51-card deck is free inside the Examius app.
What do the Basic Accounting cards cover?
They follow the PIPFA Basic Accounting syllabus — 8 chapters and 20 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.