F3 Financial Accounting

An Introduction

What is F3 all about?

• A first level accounting paper testing understanding of double-entry accounting

• Explaining the context and purpose of Financial Reporting

• Recording transactions and events

• Defining the qualitative characteristics and fundamental bases of accounting

• Preparing a Trial Balance

• Preparing basic Financial Statements (Final Accounts) for sole traders,

partnerships and companies

• Understanding basic International Accounting Standards

F3 Financial Accounting

Syllabus areas (Dec 2010)

A Context and purpose of Financial Reporting

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B Qualitative Characteristics of Financial Information & Fundamental Bases of
Accounting

C Use of Double-Entry and Accounting Systems

D Recording Transactions and Events

E Preparing a Trial Balance

F Preparing Basic Financial Statements

F3 Exam format

F3 is assessed by a two hour examination, either paper-based or computer-based.

All parts of the Syllabus will be assessed and the exam will include both
computational and non-computational elements.

There will be
40 TWO mark questions, and
10 ONE mark questions,
making 90 marks in all

How to pass F7

• Mastering the Double-Entry technique

• Understanding how transactions are converted into the language of accountancy,

Debits & Credits
• Being able to rule-off Ledger Accounts and produce a Trial Balance

• Being familiar with typical adjustments to the trial balance, such as Depreciation,
Revaluations and Disposals, Inventory, Bad and Doubtful debts, Accruals and
Prepayments, etc

• Preparing Final Accounts (incl. Statements of Cash Flow)

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 • Mastering the 3 great skills of Control Accounts, Bank Reconciliation Statements
and Suspense Accounts (incl. Correction of Errors)

• Preparing Limited Company and Partnership Accounts

• Using Incomplete Records to produce key figures in Final Accounts

• Knowing your Accounting Standards

So you must ensure that you

• Understand the concepts used in each syllabus area

• Be able to adapt techniques studied during the course to individual exam

questions

• Practise exam questions in a timed exam environment

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