ICAP PRC-1 Fundamentals of Accounting study guide
ICAP PRC-1 Fundamentals of Accounting · Work through your exam, one topic at a time.
PRC-1 Fundamentals of Accounting is the entry-level accounting paper in ICAP's Certificate in Accounting and Finance (CAF) pathway, the route Pakistani students take toward the chartered accountancy qualification. It assumes no prior bookkeeping knowledge and builds the double-entry foundation everything later depends on: recording transactions, preparing a trial balance, adjusting for accruals and depreciation, and producing financial statements for sole traders, partnerships, companies and not-for-profit entities. The ICAP PRC-1 Fundamentals of Accounting study guide has 14 sections and about 3,982 words.
01Introduction to Accounting and Conceptual Framework
This domain tests why accounting information is prepared, the objective of general purpose financial reporting, the qualitative characteristics, and the definitions and recognition criteria for the elements. Expect scenario questions that ask you to classify an item or choose a measurement basis.
290 words, about 1 min02Accounting Cycle
This domain tests the sequence from source document to financial statements, the purpose of each stage, and the effect of errors before reporting. Exam questions often ask where a transaction is first recorded or which step detects a particular problem.
313 words, about 2 min03Double Entry and Books of Prime Entry
This domain tests the dual effect of every transaction, debit and credit rules, and the use of books of prime entry. Exam tasks include recording purchases, sales, returns, cash and journal entries, then identifying the correct ledger posting.
303 words, about 2 min04Trial Balance
This domain tests preparation and interpretation of a trial balance, including which balances are debit or credit and which errors it fails to detect. Exam questions often give a list of balances and ask for missing figures or the effect of an error.
306 words, about 2 min05Adjustments and Financial Statements
This domain tests period-end adjustments and their presentation in the statement of profit or loss and statement of financial position. Exam questions require accruals, prepayments, depreciation, closing inventory, irrecoverable debts and allowances, and their effect on profit and assets.
288 words, about 1 min06Bank and Cash Reconciliations
This domain tests reconciliation of the cash book with the bank statement, including adjustments to the cash book and timing differences in the reconciliation statement. Exam questions often require an adjusted cash book balance and a bank reconciliation.
304 words, about 2 min07Control Accounts
This domain tests preparation of the receivables ledger control account and payables ledger control account, and reconciliation of their balances with the individual ledger listing. Exam questions often provide opening balances, credit sales or purchases, receipts or payments, returns, discounts and bad debts.
274 words, about 1 min08Inventory
This domain tests inventory valuation under IAS 2, cost of sales, and the effect of write-downs. Exam questions ask for the value of closing inventory, the write-down required, or the treatment of costs such as delivery, storage and administration.
287 words, about 1 min09Depreciation and Non-current Assets
This domain tests capital expenditure versus revenue expenditure, depreciation methods, carrying amounts, revaluation and disposals. Exam questions require depreciation calculations and ledger entries, including the effect on profit and the statement of financial position.
271 words, about 1 min10Receivables, Payables and Provisions
This domain tests irrecoverable debts, allowances for receivables, recoveries, payables and provisions under IAS 37. Exam questions require distinguishing a write-off from an allowance and deciding whether a provision is recognised.
289 words, about 1 min11Accruals, Prepayments and Accounting for Partnerships
This domain tests four period-end adjustments and partnership appropriation. Exam questions often combine accruals and prepayments with partnership profit sharing, interest on capital, salaries and current accounts.
253 words, about 1 min12Company Accounts and Financial Statement Analysis
This domain tests company equity, dividends, the statement of changes in equity and ratio analysis. Exam questions ask you to prepare extracts or interpret profitability, liquidity, efficiency and gearing ratios.
259 words, about 1 min13Accounting for Not-for-Profit Entities and Incomplete Records
This domain tests receipts and payments accounts, income and expenditure accounts, subscriptions, and profit calculation from incomplete records. Exam questions require conversion from cash records to accrual figures and reconstruction of capital, sales or purchases.
272 words, about 1 min14Ethics, Professional Conduct and Computerised Accounting Systems
This domain tests ethical threats and safeguards and the controls needed in computerised accounting. Exam questions present a scenario and ask you to identify the threat, the principle affected and an appropriate safeguard, or to identify a weakness in an accounting system.
273 words, about 1 min