Cambridge (CIE) O Level Accounting specification (7707)
Understanding the exam specification is key to doing well in your Cambridge (CIE) O Level Accounting exam. It lays out exactly what you need to learn, how you'll be assessed, and what skills the examiners seek. Whether you're working through the course for the first time or revising for your final exams, the specification helps you stay focused and confident in your preparation.
We've included helpful revision tools to support you in putting the specification into practice. Wherever you're starting from, you'll find everything you need to feel prepared, from the official specification to high-quality resources designed to help you succeed.
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In the next section, you'll find a simplified summary of the official Cambridge (CIE) O Level Accounting specification, along with a breakdown of key topics, assessment structure, and useful study resources. We've also included links to topic-level guides and revision tools to help you put the specification into practice.
Contents
Disclaimer
This page includes a summary of the official Cambridge (CIE) O Level Accounting (7707) specification, provided to support your revision. While we've made every effort to ensure accuracy, Save My Exams is not affiliated with the awarding body.
For the most complete and up-to-date information, we strongly recommend consulting the official Cambridge (CIE) specification PDF.
Specification overview
Cambridge O Level Accounting aims to equip learners with basic principles of accounting and their application in business contexts. The course fosters skills in recording, classifying, and summarising accounting information, promoting an understanding of financial control, business decision-making, and financial reporting. Students gain confidence in applying accounting techniques, interpreting financial documents, and understanding the role of accounting in both personal finance and business enterprises. The specification prepares learners for further study and employment by developing critical thinking, numerical accuracy, and the ability to analyse financial information clearly and effectively.
Subject content breakdown
1 The fundamentals of accounting
- Purpose of accounting, users of accounting information
- The accounting equation, double entry bookkeeping
- Business documents, books of prime entry
- The ledger, trial balance, correction of errors, bank reconciliation
- Capital and revenue expenditure/income, income statements, statements of financial position
2 Accounting procedures
- Books of prime entry, cash books, petty cash, sales and purchase ledgers
- Control accounts, preparation and correction of trial balance
- Correction of errors, suspense accounts
- Bank reconciliation statements
- Accounting for depreciation, provisions, accruals and prepayments
- Bad debts and provision for doubtful debts
3 Accounting for partnerships
- Features of partnerships, partnership agreements
- Capital and current accounts of partners
- Appropriation account, partner’s share of profit or loss
- Admission of a new partner
4 Accounting for limited companies
- Difference between private and public limited companies
- Share capital, retained earnings, reserves
- Dividends, issue of shares
- Income statements, statements of financial position for limited companies
5 Analysis and interpretation
- Purpose and limitations of accounting ratios
- Calculation and interpretation of ratios: profitability, liquidity, efficiency
- Analysis of financial statements
6 Accounting principles and policies
- Accounting concepts: business entity, going concern, historical cost, consistency, duality, materiality, realisation, accruals, matching, prudence
- Importance of applying accounting principles
Assessment structure
Paper 1: Multiple Choice
- 1 hour, 30 marks
- All questions compulsory
- Assesses core areas of accounting knowledge and understanding
- Multiple choice format
Paper 2: Structured Written Paper
- 1 hour 45 minutes, 120 marks
- All questions compulsory, structured and scenario-based
- Assesses application of accounting techniques, analysis, and interpretation
- Includes preparation of accounts, correction of errors, financial statements, and interpretation tasks
Assessment Approach
- Paper 1: 30% of total marks
- Paper 2: 70% of total marks
- Both papers externally assessed
- Focus on recall, application, analysis, and evaluation
- Candidates must show clear working and apply principles accurately
Key tips for success
Doing well in your Cambridge (CIE) O Level Accounting isn't just about how much you study, but how you study. Here are a few proven tips to help you stay on track
- Start with a clear plan: Break the subject into topics and create a revision schedule that allows enough time for each. Start early to avoid last-minute stress.
- Focus on understanding, not memorising: Use our revision notes to build a strong foundation in each topic, making sure you actually understand the material.
- Practise regularly: Attempt past papers to familiarise yourself with the exam format and timing. Mark your answers to see how close you are to full marks.
- Be strategic with your revision: Use exam questions by topic to focus on weaker areas, and flashcards to reinforce important facts and terminology.
- Learn from mistakes: Whether it's from mock exams or practice questions, spend time reviewing what went wrong and why. This helps prevent repeat mistakes in the real exam.
- Stay balanced: Don't forget to take regular breaks, eat well, and get enough sleep, a healthy routine makes revision much more effective.
With the right approach and consistent practice, you'll build confidence and improve your chances of exam success.
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