Cambridge International · International A Level · 9706
Accounting — Keywords & Key Terms — Definitions Glossary (2026)
Cambridge International A Level Accounting (9706)
Topic-by-topic keywords, key terms and definitions for precise exam language—separate from our revision checklists (topic coverage) and formula sheets (equations).
Keywords & Key Terms — definitions
Examiner-style keywords and definitions organised by syllabus topic. Terms are tagged Essential (start here), Core (typical exam standard), and Advanced for harder distinctions — tick each row when you can recall it. Your progress is saved in this browser for this list.
Cambridge International International A Level Accounting (9706)
Cambridge International International A Level Accounting (9706)
Cambridge International A Level Accounting (9706)
Cambridge 9706 (2026) covers foundations of accounting, financial statements for sole traders/partnerships/limited companies, costing techniques, investment appraisal, and ratio analysis — split across AS structured questions and A Level extended scenarios.
Mark schemes: Cambridge A Level Accounting awards method marks for showing rigorous workings, correctly labelled statements, and using the precise terminology of IAS-style headings; figures without supporting calculations or statements without proper formatting lose presentation marks.
Active recall: 0 / 21 terms ticked
| Recalled | Topic | Level | Keyword | Definition |
|---|---|---|---|---|
| Foundations of accounting | Core | Accounting equation | Assets = Capital + Liabilities — the basis of double-entry. | |
| Foundations of accounting | Core | Double-entry bookkeeping | Every transaction has equal debit and credit entries. | |
| Foundations of accounting | Core | Trial balance | List of ledger balances used to check arithmetic accuracy. | |
| Foundations of accounting | Core | Books of prime entry | Day books, journal, and cash book that feed the ledger. | |
| Foundations of accounting | Advanced | Suspense account | Temporary account used to balance the trial balance until errors are found. | |
| Financial statements | Core | Income statement | Statement of profit or loss showing revenue minus expenses. | |
| Financial statements | Core | Statement of financial position (SOFP) | Snapshot of assets, liabilities, and equity at a date. | |
| Financial statements | Core | Statement of cash flows | Reconciles operating, investing, and financing cash movements. | |
| Financial statements | Core | Straight-line depreciation | (Cost − residual) ÷ useful life — equal annual charge. | |
| Financial statements | Advanced | Reducing-balance depreciation | Fixed % applied to net book value — higher charge in early years. | |
| Costing & decision-making | Core | Fixed vs variable costs | FC unchanged with output; VC change in proportion to units. | |
| Costing & decision-making | Core | Contribution per unit | Selling price per unit minus variable cost per unit. | |
| Costing & decision-making | Core | Break-even point | Units = Fixed costs ÷ contribution per unit. | |
| Costing & decision-making | Core | Marginal vs absorption costing | Marginal charges only VC to product; absorption includes FC overheads. | |
| Costing & decision-making | Core | Net present value (NPV) | Sum of discounted future cash flows minus initial outlay. | |
| Costing & decision-making | Advanced | IRR & payback period | IRR is discount rate giving NPV = 0; payback is years to recoup outlay. | |
| Analysis & ratios | Core | Gross profit margin | (Gross profit ÷ revenue) × 100 — pricing and cost control. | |
| Analysis & ratios | Core | Return on capital employed (ROCE) | (Profit before interest and tax ÷ capital employed) × 100. | |
| Analysis & ratios | Core | Current ratio | Current assets ÷ current liabilities — short-term liquidity. | |
| Analysis & ratios | Core | Gearing | Long-term debt ÷ (debt + equity) — financial risk measure. | |
| Analysis & ratios | Advanced | Inventory turnover | Cost of sales ÷ average inventory — stock-management efficiency. |
Pair this with our revision checklists, formula sheets hub and past paper finder.
Accounting (9706) — Keywords & Key Terms FAQ
- What is on this Cambridge International A Level Accounting keywords and key terms list?
- It is a topic-organised glossary of important accounting terms with short, exam-style definitions aligned to Cambridge International A Level Accounting (9706) (9706). It is designed for “define”, “state”, “outline” and “explain” questions where precise vocabulary earns marks.
- How should I use this Accounting glossary alongside past papers?
- Tick terms when you can recall them without reading the answer, then check your wording against mark schemes. Pair vocabulary practice with past papers for A Level Accounting (9706) so you apply terms in context.
- Is this the same as a revision checklist or a formula sheet?
- No. Revision checklists help you track which syllabus topics you have covered and your confidence—separate pages on Tutopiya. Formula sheets summarise equations and quantitative relationships. This page is only a definitions and key-terms glossary for Accounting.
- Can I download this Accounting keywords and key terms list for free?
- Yes. After a quick free sign-up you can download a UTF-8 CSV (opens in Excel or Google Sheets) or open a print-friendly page and save as PDF. Browsing the list on the page is free.
- Is this Accounting list aligned to the 9706 specification?
- Topic groupings and wording follow Cambridge International A Level Accounting (9706) for Cambridge International A Level. Always confirm final learning objectives and any regional options in your official specification and recent examiner reports for your exam session.
- Why focus on definitions instead of full notes?
- Mark schemes reward correct technical terms and clear links between ideas. A compact glossary lets you drill the exact language examiners expect for Accounting at A Level, separate from longer notes or topic trackers.