Demonstrate understanding of company financial statement preparation
This standard asks you to prepare and explain company financial statements—like the income statement, balance sheet, and cash flow statement—from raw accounting data and adjustments. You'll need to make journal entries, complete these financial statements correctly, and explain why certain items are treated the way they are.
You complete most of the journal entries and financial statement sections with some accuracy, and attempt to explain one or two treatments of items.
You complete accounting entries using mostly correct account names and figures, understand the difference between journal and ledger entries, complete financial statement extracts with mostly accurate figures, and explain treatments like why provisional tax paid reduces the tax liability.
You complete all entries and extracts with accurate figures, clearly distinguish between different types of transactions (like share buybacks versus share sales), and integrate specific dollar amounts into paragraph explanations that show how amounts flow through the financial statements and affect different sections.
Standards typically taken alongside or after this one. Same subject, grouped by level.