FAC1503 EXAM PACK 2026 COMPLETE
QUESTIONS AND ANSWERS VERIFIED GRADED
A+
◉ First step in accounting cycle. Answer: Completion of a source
document
◉ Two thing transactions may do. Answer: Create income or create
expense
Affect assets/equity/liabilities
◉ Transactions that affect only assets, equity and liabilities. Answer:
Capital contributions
Getting a loan
Purchase an asset for cash
Buying asset on credit
Payments to creditors
Withdrawals by owner
◉ Transactions that affect income and expenditure. Answer: Income
Expenditure
Income in form of credit
Expenditure in form of credit
QUESTIONS AND ANSWERS VERIFIED GRADED
A+
◉ First step in accounting cycle. Answer: Completion of a source
document
◉ Two thing transactions may do. Answer: Create income or create
expense
Affect assets/equity/liabilities
◉ Transactions that affect only assets, equity and liabilities. Answer:
Capital contributions
Getting a loan
Purchase an asset for cash
Buying asset on credit
Payments to creditors
Withdrawals by owner
◉ Transactions that affect income and expenditure. Answer: Income
Expenditure
Income in form of credit
Expenditure in form of credit
