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Principles of Accounting: Introduction to Liquidity Ratios
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Principles of Accounting: Introduction to Liquidity Ratios

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Introduction to Liquidity Ratios

By garikaib|2025-02-12T09:33:52+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Liquidity Ratios

Liquidity is a measure of how well a business can meet its short term obligations as and when they fall due
It is usually expressed in terms of how well the entity/business in question can convert its assets into cash
Short term obligations include amounts owed to creditors, bank […]

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Principles of Accounting: Introduction to Departmental Accounts
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Principles of Accounting: Introduction to Departmental Accounts

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Introduction to Departmental Accounts

By garikaib|2025-02-12T09:30:46+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts

It is customary to split a large business into various departments
For example large retail shops like Pick n’ Pay and OK
A shop might have:
- A furniture department e.g. kitchen tables and chairs
- Home electrical e.g. irons and fridges
- Refrigerated foods
- Fruit and Veggies
- Liquor
- Cleaning
- Foodstuffs etc

[…]

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Cambrige Notes: Principles of Accounting: Missing figures
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Cambrige Notes: Principles of Accounting: Missing figures

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Missing figures

By Garikai Dzoma|2025-02-12T09:28:39+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Single entry and Incomplete records: Missing figures

As already pointed out creating financial statements using single entry or incomplete records requires filling in the gaps
This is because naturally there will be some missing figures/amounts
These amounts have to be ascertained
We have already looked at how a Statement of […]

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Cambrige Notes: Principles of Accounting: Introduction to Accounting for Partnerships
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Cambrige Notes: Principles of Accounting: Introduction to Accounting for Partnerships

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Introduction to Accounting for Partnerships

By Garikai Dzoma|2025-02-12T09:35:01+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Accounting for Partnerships

It is quite common for two or more people to enter into a business partnership with one another
We have already looked at types of business entities here
You can also read more about Partnerships in a post found here
While most of the […]

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Principles of Accounting: Acid Test Ratio / Quick Asset Ratio
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Principles of Accounting: Acid Test Ratio / Quick Asset Ratio

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Acid Test Ratio / Quick Asset Ratio

By garikaib|2025-02-12T09:36:42+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Liquidity Ratios: Acid Test Ratio / Quick Asset Ratio

As pointed out in our discussion of the Current Asset Ratio
Including stock when calculating stock might not be desirable
This is because it might not always be easy to turn the asset of stock/inventory into liquid cash so as to […]

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Principles of Accounting: Departmental Accounting Example
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Principles of Accounting: Departmental Accounting Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Departmental Accounting Example

By garikaib|2025-02-12T09:32:10+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts Example

We have already looked at the basics of departmental accounting here
Now it is time to look at an example

Example Question

From the following list of balances you are required to prepare a departmental Income Statement in columnar form for the year ended 31 March 20X5, in respect of […]

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Cambrige Notes: Principles of Accounting: Incomplete and Single Records Example 1
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Cambrige Notes: Principles of Accounting: Incomplete and Single Records Example 1

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Incomplete and Single Records Example 1

By Garikai Dzoma|2025-02-12T09:28:50+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Single entry and Incomplete records: Example 1

After looking at the steps required to create Financial Statements using Incomplete and Single Records
And calculating missing figures
And learning about Statement of Affairs
It is time to look at a first example

Question

On 1 May 20X8 Jenny Barnes, who is […]

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Cambrige Notes: Principles of Accounting: Partnerships: Capital and Current Accounts
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Cambrige Notes: Principles of Accounting: Partnerships: Capital and Current Accounts

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Partnerships: Capital and Current Accounts

By Garikai Dzoma|2025-02-12T09:35:14+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Capital and Current Accounts

Like a normal business partnerships are formed when their owners (partners) inject capital into the business
While the principles of recording capital are the same as those of a Sole Trader business
There are certain differences that need to be borne in mind
One […]

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Principles of Accounting: Rate of inventory turnover
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Principles of Accounting: Rate of inventory turnover

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Rate of inventory turnover

By garikaib|2025-02-12T09:38:53+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Liquidity Ratios: Rate of inventory turnover

Proprietors often want to know how “well” their business is doing
Besides such measures as profitability
one way of estimating liquidity is through the rate of inventory turnover ratio
The ratio estimates the number of times inventory is sold or used in a given financial period […]

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