2026 Syllabus
2026 Syllabus
2026 Syllabus
Cambridge O Level
Accounting 7707
Use this syllabus for exams in 2026.
Exams are available in the June and November series.
Version 1
For the purposes of screen readers, any mention in this document of Cambridge IGCSE
refers to Cambridge International General Certificate of Secondary Education.
Why choose Cambridge International?
Cambridge International prepares school students for life, helping them develop an informed curiosity and a
lasting passion for learning. We are part of the University of Cambridge.
Our Cambridge Pathway gives students a clear path for educational success from age 5 to 19. Schools can
shape the curriculum around how they want students to learn – with a wide range of subjects and flexible ways
to offer them. It helps students discover new abilities and a wider world, and gives them the skills they need for
life, so they can achieve at school, university and work.
Our programmes and qualifications set the global standard for international education. They are created by
subject experts, are rooted in academic rigour and reflect the latest educational research. They provide a
strong platform for learners to progress from one stage to the next, and are well supported by teaching and
learning resources. Learn more about our research at www.cambridgeassessment.org.uk/our-research/
We believe education works best when curriculum, teaching, learning and assessment are closely aligned.
Our programmes develop deep knowledge, conceptual understanding and higher-order thinking skills, to
prepare students for their future. Together with schools, we develop Cambridge learners who are confident,
responsible, reflective, innovative and engaged – equipped for success in the modern world.
Every year, nearly a million Cambridge students from 10 000 schools in 160 countries prepare for their future
with the Cambridge Pathway.
School feedback: ‘We think the Cambridge curriculum is superb preparation for university.’
Feedback from: Christoph Guttentag, Dean of Undergraduate Admissions, Duke University, USA
Quality management
Cambridge International is committed to providing exceptional quality. In line with this commitment, our
quality management system for the provision of international education programmes and qualifications
for students aged 5 to 19 is independently certified as meeting the internationally recognised standard,
ISO 9001:2015. Learn more at www.cambridgeinternational.org/about-us/our-standards/
Key benefits
Cambridge O Level is typically for 14 to 16 year olds and is an internationally recognised qualification. It has
been designed especially for an international market and is sensitive to the needs of different countries.
Cambridge O Level is designed for learners whose first language may not be English, and this is acknowledged
throughout the examination process.
Our programmes promote a thorough knowledge and understanding of a subject and help to develop the skills
learners need for their next steps in education or employment.
Cambridge O Level Accounting is accepted by universities and employers as proof of an understanding of the
theory and concepts of accounting, and the ways in which accounting is used in a variety of modern economic
and business contexts.
Learners focus on the skills of recording, reporting, presenting and interpreting financial information; these form
an ideal foundation for further study, and for a future career within the profession.
The syllabus is structured so that learners attain both practical skills and theoretical knowledge.
Our programmes balance a thorough knowledge and understanding of a subject and help to develop the skills
learners need for their next steps in education or employment.
Cambridge
learner
School feedback: ‘Cambridge O Level has helped me develop thinking and analytical skills
which will go a long way in helping me with advanced studies.’
Feedback from: Kamal Khan Virk, former student at Beaconhouse Garden Town Secondary School, Pakistan, who
went on to study Actuarial Science at the London School of Economics
Cambridge O Levels are accepted and valued by leading universities and employers around the world as
evidence of academic achievement. Cambridge students can be confident that their qualifications will be
understood and valued throughout their education and career, in their home country and internationally. Many
universities require a combination of Cambridge International AS & A Levels and Cambridge O Levels or
equivalent to meet their entry requirements.
Supporting teachers
We believe education is most effective when curriculum, teaching and learning, and assessment are closely
aligned. We provide a wide range of resources, detailed guidance, innovative training and targeted professional
development so that you can give your students the best possible preparation for Cambridge O Level. To find
out which resources are available for each syllabus go to our School Support Hub.
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2 Syllabus overview
Aims
The aims describe the purposes of a course based on this syllabus.
Content overview
1 The fundamentals of accounting
This section introduces the subject by explaining the difference between book-keeping and accounting.
The role of accounting in providing information and the purposes of measuring business profit and loss are
also explored. Basic accounting terms and the accounting equation are introduced.
4 Accounting procedures
Within this section, consideration is given to the importance of distinguishing between capital and revenue
expenditure and receipts. Non-current assets are further explored in terms of accounting for depreciation
and disposals. Procedures to record adjustments for accruals and prepayments, irrecoverable debts,
provision of doubtful debts and the recovery of debts written off are included. Inventory valuation, and its
impact on financial statements, is also covered.
This O Level syllabus shares content with other Accounting syllabuses. For further support see
the School Support Hub for IGCSE Accounting. Textbooks endorsed to support IGCSE Accounting are
suitable for use with this syllabus.
Assessment overview
All candidates take two components. Candidates will be eligible for grades A* to E.
Assessment objectives
The assessment objectives (AOs) are:
AO2 Analysis
Candidates should be able to:
• select data which is relevant to identified needs of business
• order, analyse and present information in an appropriate accounting form.
AO3 Evaluation
Candidates should be able to:
• interpret and evaluate accounting information and draw reasoned conclusions.
AO2 Analysis 25
AO3 Evaluation 10
Total 100
Paper 1 Paper 2
AO2 Analysis 20 25
AO3 Evaluation 0 15
3 Subject content
This syllabus gives you the flexibility to design a course that will interest, challenge and engage your learners.
Where appropriate you are responsible for selecting topics, subject contexts, resources and examples to
support your learners’ study. These should be appropriate for the learners’ age, cultural background and
learning context as well as complying with your school policies and local legal requirements.
In all of the following, candidates are required to apply their understanding to a variety of accounting scenarios.
Candidates should be able to make simple decisions based upon the analysis and evaluation of information
provided.
• recognise and understand the following business documents: invoice, debit note, credit note, statement
of account, cheque, receipt
• complete pro-forma business documents
• understand the use of business documents as sources of information: invoice, credit note, cheque
counterfoil, paying-in slip, receipt, bank statement.
• understand the purposes of purchases ledger and sales ledger control accounts
• identify the books of prime entry as sources of information for the control account entries
• prepare purchases ledger and sales ledger control accounts to include credit purchases and sales,
receipts and payments, cash discounts, returns, irrecoverable debts, dishonoured cheques, interest on
overdue accounts, contra entries, refunds, opening and closing balances (debit and credit within each
account).
Candidates do not need to prepare control accounts which are part of the double entry system.
Candidates do not need to reconcile control account balances with the sales and purchases ledger
balances.
4 Accounting procedures
4.1 Capital and revenue expenditure and receipts
• distinguish between and account for capital expenditure and revenue expenditure
• distinguish between and account for capital receipts and revenue receipts
• calculate and comment on the effect on profit of incorrect treatment
• calculate and comment on the effect on asset valuations of incorrect treatment.
• define depreciation
• explain the reasons for accounting for depreciation
• name and describe the straight-line, reducing balance and revaluation methods of depreciation
• prepare ledger accounts and journal entries for the provision of depreciation
• prepare ledger accounts and journal entries to record the sale of non-current assets, including the use
of disposal accounts.
• understand the meaning of irrecoverable debts and recovery of debts written off
• prepare ledger accounts and journal entries to record irrecoverable debts
• prepare ledger accounts and journal entries to record recovery of debts written off
• explain the reasons for maintaining a provision for doubtful debts
• prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for
doubtful debts.
• understand the basis of the valuation of inventory at the lower of cost and net realisable value
• prepare simple inventory valuation statements
• recognise the importance of valuation of inventory and the effect of an incorrect valuation of inventory on
gross profit, profit for the year, equity and asset valuation.
Candidates will not be required to answer questions on the admission/departure of a partner, the dissolution
of a partnership or changes to a profit sharing ratio.
Candidates will not be expected to understand cumulative and non-cumulative preference shares, rights
issues, share premium or capital redemption reserve. However, candidates should understand the difference
between redeemable and non-redeemable preference shares.
• distinguish between receipts and payments accounts and income and expenditure accounts
• prepare receipts and payments accounts
• prepare accounts for revenue-generating activities, e.g. refreshments, subscriptions
• prepare income and expenditure accounts and statements of financial position
• make adjustments to financial statements as detailed in 5.1 (sole traders)
• define and calculate the accumulated fund.
Candidates will only be asked questions on incomplete records in relation to sole trader businesses.
Candidates should be able to understand, calculate and explain the importance of the following
accounting ratios:
• Gross margin
• Profit margin
• Return on capital employed (ROCE)
• Current ratio
• Liquid (acid test) ratio
• Rate of inventory turnover (times)
• Trade receivables turnover (days)
• Trade payables turnover (days)
• prepare and comment on simple statements showing comparison of results for different years
• make recommendations and suggestions for improving profitability and working capital
• understand the significance of the difference between the gross margin and the profit margin as an
indicator of a business’s efficiency
• explain the relationship of gross profit and profit for the year to the valuation of inventory, rate of
inventory turnover, revenue, expenses, and equity.
Candidates should be able to explain the uses of accounting information by the following interested
parties for decision-making:
• owners
• managers
• trade payables
• banks
• investors
• club members
• other interested parties such as governments, tax authorities, etc.
Candidates should be able to recognise the limitations of accounting statements due to such factors as:
• historic cost
• difficulties of definition
• non-financial aspects
Candidates should be able to explain and recognise the application of the following accounting
principles:
Candidates should be able to recognise the influence of international accounting standards and
understand the following objectives in selecting accounting policies:
• comparability
• relevance
• reliability
• understandability
Appendix
Accounting ratios
Commonly used accounting ratios
Liquidity ratios
Current Assets
(i) Current ratio = Current Liabilities (also known as Working Capital Ratio)
Trade Receivables
(iv) Trade Receivables Turnover = Credit Sales × 365 (answer given in days)
Trade Payables
(v) Trade Payables Turnover = Credit Purchases × 365 (answer given in days)
Candidates answer all 35 multiple-choice questions and indicate their answers on the answer sheet provided.
This paper assesses content drawn from the entire syllabus. The questions may include calculations.
This is a structured written paper made up of five questions worth 20 marks each and assessing content drawn
from the entire syllabus.
Please see Section 3: Subject content for guidance about the topics and the documents candidates are
expected to have studied in preparation for the examination.
Candidates are presented with stimulus material followed by a variety of tasks on the question paper. For
example, candidates may be asked to carry out calculations, complete a cash book, complete an incomplete
statement of accounts, or prepare accounts based on information given in the question, or prepare suspense
accounts and journal entries, among other accounting tasks.
By completing authentic tasks candidates are given the opportunity to show their knowledge and
understanding of the principles, purposes and procedures of accounting. Candidates are expected to analyse
financial data and evaluate outcomes.
Candidates answer all questions and write their answers on the question paper. Candidates should be aware of
the marks for each part question. These are printed on the question paper. Candidates should use them as a
guide to the amount of detail and length of response expected and to help them manage their time effectively.
Command words
Command words and their meanings help candidates know what is expected from them in the exams. The
table below includes command words used in the assessment for this syllabus. The use of the command word
will relate to the subject context.
Analyse examine in detail to show meaning, identify elements and the relationship between
them
Describe state the points of a topic / give characteristics and main features
Develop take forward to a more advanced stage or build upon given information
Explain set out purposes or reasons / make the relationships between things clear / say why
and/or how and support with relevant evidence
Identify name/select/recognise
Suggest apply knowledge and understanding to situations where there are a range of valid
responses in order to make proposals / put forward considerations
Well-known international standards, which are relevant to the level of study, will be included in question papers,
mark schemes and associated documents.
It is recommended that centres use this updated terminology in their teaching and learning materials. However,
candidates will not lose marks for using different terms.
Accrued and prepaid income Accrued and prepaid income / outstanding and prepaid income
Books of prime entry Books of prime entry / books of prime (original) entry
Complete reversal Names the error as reversals / names the error as complete reversal
Principles Principles/principles/concepts
Profit for the year Profit (before tax) for the year / net profit
This section is an overview of other information you need to know about this syllabus. It will help to share the
administrative information with your exams officer so they know when you will need their support. Find more
information about our administrative processes at www.cambridgeinternational.org/eoguide
We do not expect learners starting this course to have previously studied accounting.
You can view the timetable for your administrative zone at www.cambridgeinternational.org/timetables
You can enter candidates in the June and November exam series.
Check you are using the syllabus for the year the candidate is taking the exam.
Private candidates can enter for this syllabus. For more information, please refer to the Cambridge Guide to
Making Entries.
Cambridge IGCSE, Cambridge IGCSE (9–1) and Cambridge O Level syllabuses are at the same level.
Making entries
Exams officers are responsible for submitting entries to Cambridge International. We encourage them to work
closely with you to make sure they enter the right number of candidates for the right combination of syllabus
components. Entry option codes and instructions for submitting entries are in the Cambridge Guide to Making
Entries. Your exams officer has access to this guide.
Exam administration
To keep our exams secure, we produce question papers for different areas of the world, known as
administrative zones. We allocate all Cambridge schools to an administrative zone determined by their location.
Each zone has a specific timetable.
Some of our syllabuses offer candidates different assessment options. An entry option code is used to identify
the components the candidate will take relevant to the administrative zone and the available assessment
options.
Retakes
Candidates can retake the whole qualification as many times as they want to. Information on retake entries is at
www.cambridgeinternational.org/retakes
Language
This syllabus and the related assessment materials are available in English only.
Access arrangements
Access arrangements (including modified papers) are the principal way in which Cambridge International
complies with our duty, as guided by the UK Equality Act (2010), to make ‘reasonable adjustments’ for
candidates with special educational needs (SEN), disability, illness or injury. Where a candidate would otherwise
be at a substantial disadvantage in comparison to a candidate with no SEN, disability, illness or injury, we
may be able to agree pre-examination access arrangements. These arrangements help a candidate by
minimising accessibility barriers and maximising their opportunity to demonstrate their knowledge, skills and
understanding in an assessment.
Important:
Requested access arrangements should be based on evidence of the candidate’s barrier to assessment
and should also reflect their normal way of working at school. This is explained in the Cambridge Handbook
www.cambridgeinternational.org/eoguide
• For Cambridge International to approve an access arrangement, we will need to agree that it constitutes
a reasonable adjustment, involves reasonable cost and timeframe and does not affect the security and
integrity of the assessment.
• Availability of access arrangements should be checked by centres at the start of the course. Details of our
standard access arrangements and modified question papers are available in the Cambridge Handbook
www.cambridgeinternational.org/eoguide
• Please contact us at the start of the course to find out if we are able to approve an arrangement that is not
included in the list of standard access arrangements.
• Candidates who cannot access parts of the assessment may be able to receive an award based on the
parts they have completed.
A* is the highest and E is the lowest. ‘Ungraded’ means that the candidate’s performance did not meet the
standard required for grade E. ‘Ungraded’ is reported on the statement of results but not on the certificate.
In specific circumstances your candidates may see one of the following letters on their statement of results:
• Q (PENDING)
• X (NO RESULT).
These letters do not appear on the certificate.
On the statement of results and certificates, Cambridge O Level is shown as GENERAL CERTIFICATE OF
EDUCATION (GCE O LEVEL).
You must read the whole syllabus before planning your teaching programme. We review our
syllabuses regularly to make sure they continue to meet the needs of our schools. In updating this syllabus, we
have made it easier for teachers and students to understand, keeping the familiar features that teachers and
schools value.
Any textbooks endorsed to support the syllabus for examination from 2020 are still suitable for
use with this syllabus.
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