FAC 1503 ASSIGNMENT 1

Question 1 of 39 3.0 Points Please match the accounting term with the most suitable definition, example or description provided. A. When all the financial information of a business entity that is needed to understand the economic events and transactions were included in the financial statements, we can say that the information adhered to the fundamental characteristic of …………………. B. Reflects all the income earned and expenses paid by a business entity for a specific period. C. Reflects: Assets = Equity + Liabilities A1. Completeness C2. Statement of financial position B3. Statement of profit or loss and other comprehensive income Question 2 of 39 1.0 Points Understandability refers to the fact that reliable information should be neutral (without bias) in that it should not present information in a manner that will achieve a predetermined result. True False Reset Selection Question 3 of 39 1.0 Points Equity differs from liabilities in that liabilities are obligations which must be settled out of the assets of the entity, whilst equity is not an obligation which has to be settled. True False Reset Selection Question 4 of 39 1.0 Points The government is an example of internal users of financial information of any business. True False Reset Selection Question 5 of 39 1.0 Points In certain instances, the completeness of the information alone is sufficient to determine its relevance, for example, where information, irrespective of its materiality, can affect the decisions of the user. True False Reset Selection Question 6 of 39 1.0 Points The keeping of petty cash according to the imprest system is an example of a built-in control measure. True False Reset Selection Question 7 of 39 1.0 Points At year-end if there are material consumables and stationery on hand it is considered to be an expense in the current year. A stocktake will be done to determine a value for the statement of profit or loss and other comprehensive income. True False Reset Selection Question 8 of 39 1.0 Points Investors uses the accounting