Cambridge O Level Accounting (7707)

The Cambridge O Level Accounting syllabus familiarizes pupils to the theory and the concepts of accounting. It also introduces the ways in which accounting is used in a variety of modern economic and business circumstances. To build an ideal foundation both for further studies and for a future career within the profession students need to focus on the skills of recording, reporting, presenting and interpreting financial information.

This course of study replaces Cambridge O Level Principles of Accounts 7110 from 2020 ahead. The last series for O Level Principles of accounts 7110 is going to be on November 2019.

What is Accounting?

Accounting is extremely important if you want to be able to build and expand your business in a way that it can be measured. The system of tracking business' assets, liabilities, and income help you to make knowledgeable and smart business decisions based on past performance and present financial health of the company.

Why Is Accounting Important? 

Accounting plays a crucial role in running a business because it helps you track income and outgoings, ensure required compliance, and provide investors, management, and business decisions can be made by using quantitative financial information with Government.

How you will be assessed

You will be assessed at the end of the course using two components:

  • Paper 1 Multiple Choice
  • Paper 2 Structured Written Paper

Components at a glance

Following summarizes the key information about each examination paper.

Paper 1

Type: Multiple Choice Questions

Duration: 1 hour 15 minutes

Marks: 35

Skills Assessed: Knowledge and understanding Analysis

Details: You answer 35 multiple choice questions taken from anywhere on the syllabus

Percentage of Qualification: 30%

Paper 2

Type: Structured Written Paper

Duration: 1 hour 45 minutes

Marks: 100

Skills Assessed: Knowledge and understanding Analysis Evaluation

Details: You have to answer five questions taken from the entire syllabus

Percentage of Qualification: 70%

Course Contents

The fundamentals of accounting

  • The difference between bookkeeping and accounting
  • The role of accounting in a business

Sources and recording of data

  • The double entry system of book-keeping
  • Business documents
  • Books of prime entry

Verification of accounting records

  • The uses of trial balances, bank reconciliation and control
  • accounts as means of verifying accounting records

Accounting procedures

  • Capital and revenue expenditure
  • Depreciation of non-current assets
  • Accruals and prepayments
  • Irrecoverable debts and provisions for doubtful debts

Preparation of financial statements

  • Preparation of financial statements of sole traders,
  • partnerships, limited companies, clubs and societies and
  • manufacturing businesses
  • Incomplete records

Analysis and interpretation

  • Calculation and interpretation of accounting ratios
  • The users of accounting information
  • Inter-firm comparison
  • Interested parties
  • Limitation of accounting statements

Accounting principles and policies

  • The application of the main accounting principles
  • The selection of accounting policies