It is almost 2 weeks to the CFA and the MC Exams. A lot to read and digest. I am not sure at any time I can confidently say that I am ready. Can I be able to answer the exam questions? That is the One Billion Naira question.
Some things I must Know to succeed in the CFA Exams
- Can I classify the following Items:
- Assets- Cash, stock, equipment, motor vehicle etc.
- Liabilities- Loan, Account payable to suppliers, rented Equipment
- Owner’s Equity- investment by owners of the Company or Investment by shareholders of the Company
- Am I able to understand how a transaction impacts the different Account
- Understanding if the impact on the different Accounts is an increase (+)
- If the impact is a decrease (-)
- Or no impact (0)
T-Account Conventions
Classify different Transactions in their various T-Accounts ensuring that I can generate a Trial balance as was taught in Class. Understanding the Convention of Debit and Credit sides of the T Account that is left and right side of the T-Account.
- Asset
- If the impact on Asset is an increase (+) post to the left-hand side. That is the Debit side of the T Account
- If the impact on Asset is a decrease (-) post to the right hand side described as the Credit side.
- Liability
- If the impact on Liability is an increase (+), then post to the right hand side that is the called the Credit side
- If the impact on Liability is a decrease (-) post to the left hand side of the T-Account that is the Debit side
- Owner’s Equity
- If the impact on the owner’s equity is an increase (+) post to the right hand side of the T-Account called Credit side.
- If the impact on the owner’s equity is a decrease (-) post to the left-hand side of the T-Account called the Debit side
- Expenses
- If the impact on Revenue is an increase (+) post to the left-hand side. That is the Debit side of the T Account
- If the impact on Revenue is a decrease (-) post to the right-hand side that is the Credit side of the T Account.
- Revenue
- If the impact on the Revenue is an increase (+) post to the right-hand side of the T- Account called the Credit side.
- If the impact on the Revenue is a decrease, post to the left-hand side of the T-Account that is to the Debit side
Can I confidently prepare a Trial Balance Account?
In Conclusion, as the D day approaches
A T-Account is an informal word for a collection of financial records that employ double-entry bookkeeping is a T-account. Because the bookkeeping records are organized in a form that resembles a T, it is known as a T-account. Just above the T is the account title.
A trial balance is a worksheet with two columns—one for debits and one for credits—that ensures the mathematical accuracy of a company’s bookkeeping.
The debits and credits represent all business dealings a company has had over a specific time, including the total of its assets, liabilities, expenses, and income.
I can still hear Prof. admonishing us to ensure the figures are either Debit or Credit no figures standing alone.
Combining all these readings with the Family challenges, with my huge Q4 push to achieve 2022 Targets plus the CFA and MC Exams coming up at 9 am on Saturday 19th November about 2 weeks from now is not an easy one… We will do our best though.
