ZIMSEC · Form 5 · Lower 6 · Syllabus 6001
Accounting
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- Accounting concepts and the conceptual framework Financial statements give useful information to investors, lenders, suppliers, employees, government (ZIMRA) and the public. Zimbabwe follows International Financial Reporting Standards (IFRS) for companies.
- Partnership accounts Sets out capital, profit-sharing ratio, interest on capital and drawings, salaries and the procedure for admission or retirement. Without an agreement, profits are shared equally, with no interest on capital or salaries.
- Limited company accounts Loan notes (debentures) are long-term borrowings; interest is an expense, paid whether or not the company makes a profit.
- Ratio analysis and interpretation Based on historical data, affected by different accounting policies and inflation, may be distorted at the year end, and ignore non-financial factors.
- Manufacturing accounts and inventory valuation Inventory is valued at the lower of cost and net realisable value.