✅ Top Scoring Topics for O-Level POA (7087) – Updated for 2025

Nowadays, you can find all the answers to your questions on Google. Likewise, you can also find all the answers to your educational questions with us, InstanTuition!

If one of the questions that you would like to google is about the topics / chapters to be tested for POA O Level, you are at the right place!

1. Financial statements

This is the most important question to be tested in O level because it is the heaviest weightage question – 20 marks in Paper 2, which will take up 20% of your overall POA grade. In other words, if you could achieve full marks for this question, it is equivalent to scoring almost a quarter of your POA grade!

In this question, you will be tested on journal entries, adjustments to respective ledger account and classifications to the correct accounting elements.

If you learn the right tips and hacks to reduce your careless mistakes, this could be one of the easiest 20 marks in your life. I mean, which subject offers such a big giveaway of marks in exam? Only this question in POA!

Your ultimate goal of doing this question is to balance the Statement of Financial Statement accurately.

Some common careless mistakes to take note:

• In other words, make sure you have at least 2 adjustments per transaction (double entry)

• Copy the numbers correctly (from the question or from your calculator). Many students make mistakes like writing 85400 as 84500, or writing one more or one less 0. Eg. Writing 82000 as 8200

• Take note of any parallax error

Common topics / journal entries tested in this question:

- Prepayment and accrual

- Impairment loss on trade receivables

- Depreciation of non-current assets

- Correction of errors

- Private limited company

2. Financial Statements Analysis

This topic would be tested in both Paper 1 and Paper 2. It involves using data from the Statement of Financial Performance (Profit & Loss) and the Statement of Financial Position (Statement of Financial position) to:

• Evaluate profitability and liquidity

• Evaluate business efficiency in managing inventory and trade receivables

• Comment on business performance

Hence, it is essential to have all the formulas memorised as there is no formula sheet given like in your math exam! Incorrect calculation could lead to inaccurate interpretation of the business's profitability or liquidity position.

🧩 Tips to Score Well in Financial Statement Analysis

• Memorise the formulas and know where to find the values in the financial statements

• Understand what each ratio tells you, not just how to calculate it

• Practice interpreting results in complete sentences, not just one-liners

• Use past exam questions that involve ratio analysis and trend comparison

This is a high-impact topic — with proper guidance, it could account for at least 20% more of your total POA grade!

3. Limited Company

Whether it is a standalone question or incorporated into the iconic Financial Statements question (point 1 above), this is the question that also never fail to be tested in ALL exams. Make sure you know the journal entries for the following transactions:

• issuance of shares

• declaration of dividends and always remember to close dividends account to retained earnings account

• closing profit and loss to retained earning account

REMEMBER!:

• If there is any dividends payable, remember to reflect it in the current liabilities section of the statement of financial position.

• When calculating the dividends declared, remember to multiply the dividends per share by the TOTAL number of shares issued to date! So many students forget this! A way to make sense of it is to remember that you don't only want to reward your new shareholders, you have to take care of your existing shareholders too!

4. Theory

It must be so tedious and difficult to memorise all the theories in your school textbook or school notes. Fret not, we have a “secret material” that have helped our students and also can help anyone of you who are interested to score for your POA! We are not able to share this secret with you here but you know where to find us!

NOTE:

Please only take this EduBlog post as reference, it does not represent the SEAB or Cambridge. Do practise equally on all the other topics not mentioned here.

Now that you know which topics you should focus on, you know where to start your revision! Of course, you should not neglect the rest of the topics but at least you know what are the topics that WILL be tested for your upcoming O Level!

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