Non-current Assets, Errors and Control
Asset registers, capital and revenue expenditure, depreciation, disposals, errors, suspense and accounting controls.
How to study the CIMA Certificate
Secure each subject's concepts and calculations before using short business scenarios for application. Static study assets do not reproduce every computer-marked interaction or combine the four subjects into one official examination.
Core concepts
Concept 1
Record asset acquisition, depreciation and disposal.
Exam cue: Identify whether future benefits are created.
Concept 2
Distinguish capital from revenue expenditure.
Exam cue: Remove cost and accumulated depreciation on disposal.
Concept 3
Correct errors and understand control limitations.
Exam cue: Ask whether the error affects trial-balance equality.
Risk pitfalls and guardrails
Capitalising routine repairs.
Guardrail: Do not combine subjects, treat the 0-150 scale as a percentage, or rely on a remembered label without checking timing, units, assumptions and facts.
Crediting depreciation to the asset-cost account without policy basis.
Guardrail: Do not combine subjects, treat the 0-150 scale as a percentage, or rely on a remembered label without checking timing, units, assumptions and facts.
Using suspense for errors that do not affect equality.
Guardrail: Do not combine subjects, treat the 0-150 scale as a percentage, or rely on a remembered label without checking timing, units, assumptions and facts.
Memory anchors
Capital expenditure
Capital expenditure creates or improves an asset providing future benefits.
Carrying amount
Carrying amount is cost or valuation less accumulated depreciation and impairment.
Suspense account
A suspense account temporarily holds an unexplained trial-balance difference.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
Which expenditure is normally capitalised as part of a machine's initial cost?
A machine costs £52,000, delivery is £2,000 and staff training is £3,000. What amount is normally capitalised?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
What is Pass Harbor?
Completely free exam prep for 247 UK exams.
- Practice questions
- Flashcards
- Study guides
- Mock exams
- No registration
- No paywall
- Start instantly
“No more expensive exam prep. Quality study tools should be accessible to everyone.”