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YPIP Accounting and Finance Fundamentals Flashcards
52 question-and-answer cards covering Accounting and Finance Fundamentals as it is examined in YPIP. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Accounting and Finance Fundamentals deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
Distinguish current liabilities from non-current liabilities.
Current liabilities are due within one year (e.g., trade payables, short-term loans); non-current liabilities are due after more than one year (e.g., long-term loans, debentures).
What are the three sections of a cash flow statement?
Cash flows from operating activities, investing activities, and financing activities.
Which cash flow activity includes the purchase and sale of fixed assets and investments?
Investing activities.
Which cash flow activity includes issuing shares, raising/repaying loans, and paying dividends?
Financing activities.
Under the indirect method, what is the starting point for the operating activities section?
Net profit before tax, which is then adjusted for non-cash items (e.g., depreciation) and changes in working capital.
What are adjusting entries and when are they made?
Entries made at the end of an accounting period to record accruals, prepayments, depreciation, and provisions so revenues and expenses are reported in the correct period under the accrual concept.
How is an accrued expense (outstanding expense) adjusted?
Debit the expense account and credit a liability (accrued expenses/payable), recognizing an expense incurred but not yet paid.
How is a prepaid expense adjusted at period end?
Debit a prepaid expense (asset) account and credit the expense account, removing the portion paid in advance that relates to a future period.
What are closing entries?
Entries that transfer the balances of temporary accounts (revenues, expenses, drawings) to a permanent account (capital/retained earnings) at period end, resetting temporary accounts to zero.
Which accounts are NOT closed at the end of the period?
Permanent (real) accounts — assets, liabilities, and capital — carry their balances forward and are not closed.
How is the current ratio calculated and what does it measure?
Current Ratio = Current Assets / Current Liabilities; it measures short-term liquidity (ability to meet current obligations). A ratio around 2:1 is often considered satisfactory.
How is the quick (acid-test) ratio calculated?
Quick Ratio = (Current Assets − Inventory) / Current Liabilities; an ideal benchmark is about 1:1.
How is gross profit margin calculated?
Gross Profit Margin = (Gross Profit / Net Sales) × 100.
How is the debt-to-equity ratio calculated and what does it indicate?
Debt-to-Equity = Total Debt / Total Equity; it indicates financial leverage — how much the business is financed by debt relative to owners' funds.
How is inventory turnover ratio calculated?
Inventory Turnover = Cost of Goods Sold / Average Inventory; it shows how many times inventory is sold and replaced in a period.
How is return on equity (ROE) calculated?
ROE = (Net Profit after Tax / Shareholders' Equity) × 100; it measures the return generated on owners' investment.
What is working capital and how is it calculated?
Working capital is the funds available for day-to-day operations; Working Capital = Current Assets − Current Liabilities.
What is the operating cycle (working capital cycle)?
The time taken to convert resources into cash: from buying inventory, to selling it, to collecting cash from receivables (Inventory days + Receivable days − Payable days).
What is the break-even point?
The level of sales (in units or value) at which total revenue equals total costs, so there is neither profit nor loss.
How is the break-even point in units calculated?
Break-even (units) = Fixed Costs / Contribution per Unit, where Contribution per Unit = Selling Price per Unit − Variable Cost per Unit.
What is the contribution margin?
Contribution = Sales − Variable Costs; per unit it is Selling Price − Variable Cost. It first covers fixed costs and then contributes to profit.
What is the time value of money concept?
The principle that a sum of money today is worth more than the same sum in the future because money today can be invested to earn a return.
State the future value formula for a single sum under compound interest.
FV = PV × (1 + r)^n, where PV is present value, r is the interest rate per period, and n is the number of periods.
State the present value formula for a future single sum.
PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate per period, and n is the number of periods.
What this deck covers
The Accounting and Finance Fundamentals deck follows the YPIP Accounting and Finance Fundamentals syllabus — 6 chapters and 24 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 8.7 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 124 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.
Accounting and Finance Fundamentals flashcards FAQ
How many Accounting and Finance Fundamentals flashcards are in this YPIP deck?
52 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these YPIP flashcards free?
Yes. The preview here is free to read with no signup, and the full 52-card deck is free inside the Examius app.
What do the Accounting and Finance Fundamentals cards cover?
They follow the YPIP Accounting and Finance Fundamentals syllabus — 6 chapters and 24 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.