Financial Accounting Technician Level 1 study guide
Financial Accounting Technician Level 1 · Work through your exam, one topic at a time.
The Financial Accounting Technician Level 1 credential is an entry-level bookkeeping and accounting qualification. It is aimed at people starting a career in accounts, small-business owners who keep their own books, and students building a foundation before higher-level study. The Financial Accounting Technician Level 1 study guide has 10 sections and about 3,102 words.
01Accounting Fundamentals and the Accounting Equation
This domain tests classification of assets, liabilities and capital, and whether you can prove the accounting equation after a series of transactions. Expect opening-position questions, transaction effects and the distinction between capital and revenue items.
323 words, about 2 min02Double-Entry Bookkeeping and Journal Entries
This domain tests the debit and credit rules, the layout of a journal, narrations, and the ability to record transactions that are not handled by a specialised day book. Expect corrections, opening entries, drawings and non-routine transfers.
315 words, about 2 min03Ledgers, Trial Balance and Correction of Errors
This domain tests posting from books of prime entry to ledger accounts, balancing accounts, extracting a trial balance, and correcting errors using journals and the suspense account. Expect questions on errors that do and do not affect the trial balance.
319 words, about 2 min04Bank Reconciliation and Control Accounts
This domain tests reconciliation of the cash book to the bank statement, treatment of timing differences and bank charges, and the purpose of receivables and payables control accounts. Expect adjusted cash book and reconciliation statement calculations.
327 words, about 2 min05Books of Prime Entry and Source Documents
This domain tests the purpose of day books, the cash book and the general journal, and how source documents support entries. Expect questions on which book records a transaction and how totals are posted.
341 words, about 2 min06Accruals, Prepayments and Adjusting Entries
This domain tests the accrual concept, matching of income and expenses to the period, and adjusting journals for accrued and prepaid items. Expect profit and statement of financial position effects.
311 words, about 2 min07Depreciation and Non-Current Assets
This domain tests capital expenditure versus revenue expenditure, depreciation methods, accumulated depreciation, carrying amount and disposal calculations. Expect straight-line and reducing-balance figures.
283 words, about 1 min08Inventory Valuation and Cost of Sales
This domain tests inventory cost, net realisable value, cost of sales and the effect of closing inventory on profit. Expect FIFO or weighted average calculations and write-downs.
291 words, about 1 min09Receivables, Payables and Bad Debts
This domain tests trade receivables and payables, writing off bad debts, allowances for doubtful debts, and the movement in the allowance. Expect journal entries and profit effects.
298 words, about 1 min10Preparation of Financial Statements for Sole Traders
This domain tests the income statement and statement of financial position for a sole trader, including gross profit, net profit, capital and drawings. Expect adjustments for inventory, accruals and depreciation.
294 words, about 1 min