AFM

The primary objective is to equip banking professionals with the knowledge of accounting principles and financial management tools needed to analyze financial statements, manage funds, and make informed decisions in a banking environment.

Revenue and expenses recorded when earned or incurred, not when cash flows.

The going concern concept assumes that a business will continue to operate indefinitely in the foreseeable future, meaning assets are valued at cost rather than liquidation value and liabilities are settled in the normal course of business.

Gross profit excludes operating expenses; net profit deducts all expenses including tax.

Capital expenditure results in the acquisition of a fixed asset or improvement that provides benefits over more than one accounting period, while revenue expenditure is incurred for day-to-day operations and is charged fully to the profit and loss account in the same period.

Quick Ratio = (Current Assets minus Inventory) divided by Current Liabilities.

The matching principle requires that expenses incurred to earn revenues be recognized in the same accounting period as those revenues, ensuring that the profit or loss for a period reflects the true economic activity of that period.

Systematic write-off of intangible assets over their useful life.