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Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
FAC1502 ASSIGNMENT 2 SEMESTER 2 2024 /2025 - DISTINCTION
GUARANTEED 100%
Accounting entity
ans:> Every entity for which separate financial records are kept is an
accounting entity. It is crucial to view a business as a separate entity
from its owners for accounting purposes.
Financial period
ans:> The financial statements of a business entity include a statement
of financial position, providing information about the financial status at
the end of a specified period, such as monthly, quarterly, or annually.
Financial position
ans:> Describes the assets, liabilities, and equity of an entity at a
specific time, typically presented in a statement of financial position to
communicate financial information to stakeholders.
Assets
ans:> Present economic resources controlled by an entity as a result of
past events, with the potential to produce economic benefits. Assets are
classified as current or non-current based on certain criteria.
Liabilities
ans:> Obligations of an entity arising from past transactions, requiring
settlement by transferring assets or providing services. Liabilities can be
current or non-current based on their settlement timeline.
Equity
ans:> Represents the residual interest in the assets of an entity after
deducting liabilities. It is the ownership claim on the assets and is also
known as net assets or net worth.
, Double-entry system
ans:> An accounting method where every transaction is recorded with at
least one debit and one credit to maintain the balance of accounting
equations, ensuring accuracy in financial records.
Net worth
ans:> The difference between an entity's total assets and total liabilities,
representing the equity or ownership value of the entity.
Basic accounting equation (BAE)
ans:> The fundamental accounting equation that states assets equal
liabilities plus equity. It forms the basis for double-entry accounting and
reflects the balance sheet identity.
Non-current liabilities
ans:> Long-term debts settled after one year from the financial position
date.
Current liabilities
ans:> Obligations expected to be settled within 12 months from the
financial position date.
Obligation
ans:> Duty or responsibility that an entity cannot practically avoid.
IAS 1.69
ans:> Classification criteria for liabilities as current or non-current.
IAS 37
ans:> Standard for recognizing liabilities when economic benefits are
probable.
Double-entry accounting
ans:> Recording system where each transaction involves two accounts.
Accounting equation
ans:> Assets = Equity + Liabilities, representing the financial position.
Financial accounting entity
ans:> Entity with separate financial records treated independently from
the owner.
Account
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
FAC1502 ASSIGNMENT 2 SEMESTER 2 2024 /2025 - DISTINCTION
GUARANTEED 100%
Accounting entity
ans:> Every entity for which separate financial records are kept is an
accounting entity. It is crucial to view a business as a separate entity
from its owners for accounting purposes.
Financial period
ans:> The financial statements of a business entity include a statement
of financial position, providing information about the financial status at
the end of a specified period, such as monthly, quarterly, or annually.
Financial position
ans:> Describes the assets, liabilities, and equity of an entity at a
specific time, typically presented in a statement of financial position to
communicate financial information to stakeholders.
Assets
ans:> Present economic resources controlled by an entity as a result of
past events, with the potential to produce economic benefits. Assets are
classified as current or non-current based on certain criteria.
Liabilities
ans:> Obligations of an entity arising from past transactions, requiring
settlement by transferring assets or providing services. Liabilities can be
current or non-current based on their settlement timeline.
Equity
ans:> Represents the residual interest in the assets of an entity after
deducting liabilities. It is the ownership claim on the assets and is also
known as net assets or net worth.
, Double-entry system
ans:> An accounting method where every transaction is recorded with at
least one debit and one credit to maintain the balance of accounting
equations, ensuring accuracy in financial records.
Net worth
ans:> The difference between an entity's total assets and total liabilities,
representing the equity or ownership value of the entity.
Basic accounting equation (BAE)
ans:> The fundamental accounting equation that states assets equal
liabilities plus equity. It forms the basis for double-entry accounting and
reflects the balance sheet identity.
Non-current liabilities
ans:> Long-term debts settled after one year from the financial position
date.
Current liabilities
ans:> Obligations expected to be settled within 12 months from the
financial position date.
Obligation
ans:> Duty or responsibility that an entity cannot practically avoid.
IAS 1.69
ans:> Classification criteria for liabilities as current or non-current.
IAS 37
ans:> Standard for recognizing liabilities when economic benefits are
probable.
Double-entry accounting
ans:> Recording system where each transaction involves two accounts.
Accounting equation
ans:> Assets = Equity + Liabilities, representing the financial position.
Financial accounting entity
ans:> Entity with separate financial records treated independently from
the owner.
Account
