Page 1 of 62
FAC 2602 REVISION EXAM PACK WITH CORRECT
ANSWERS GRADED A+
Generally Accepted Accounting Practice - answer-Standard
accounting principles for financial reporting.
Ordinary shares - answer-Equity shares representing
ownership in a company.
Retained earnings - answer-Cumulative profits retained for
reinvestment.
Trade payables - answer-Liabilities to suppliers for
goods/services.
Accumulated depreciation - answer-Total depreciation
expense recorded over time.
Revaluation reserve - answer-Equity reserve from asset
revaluation increases.
Interest bearing borrowings - answer-Loans that incur
interest over time.
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Bank overdraft - answer-Negative bank balance due to
withdrawals.
Land and buildings - answer-Real estate assets recorded at
valuation.
Plant and equipment - answer-Tangible assets used in
production.
Trade receivables - answer-Amounts owed by customers for
sales.
Inventories - answer-Goods available for sale in business.
Loan to ABC Limited - answer-Debt owed by ABC Limited to
XYZ Limited.
Investment in ABC Limited - answer-Equity stake in another
company at cost.
Consolidated statement - answer-Combined financial
statement of parent and subsidiary.
Companies Act, 1973 - answer-Legislation governing
company operations in South Africa.
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Unrealised profit - answer-Profit not yet realized through
sale.
Closing inventories - answer-Ending stock value at financial
period's close.
Depreciation method - answer-Systematic allocation of
asset cost over time.
Financial year - answer-12-month period for financial
reporting.
Multiple choice questions - answer-Assessment format with
several answer options.
Trial balance - answer-Summary of all ledger balances at a
point.
Acquisition date - answer-Date when ownership of an asset
is obtained.
Profit on sale - answer-Earnings from selling an asset above
cost.
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Retained earnings - answer-Cumulative profits not
distributed as dividends.
Non-controlling interest - answer-Equity in a subsidiary not
owned by parent.
Land and buildings - answer-Real estate assets in financial
position.
Plant and equipment - answer-Tangible fixed assets used in
operations.
Trade and other receivables - answer-Amounts owed by
customers and other parties.
Inventories - answer-Goods available for sale or production.
Cash and cash equivalents - answer-Liquid assets available
for immediate use.
Bank overdraft - answer-Negative bank balance exceeding
available funds.
Trade and other payables - answer-Amounts owed to
suppliers and creditors.
FAC 2602 REVISION EXAM PACK WITH CORRECT
ANSWERS GRADED A+
Generally Accepted Accounting Practice - answer-Standard
accounting principles for financial reporting.
Ordinary shares - answer-Equity shares representing
ownership in a company.
Retained earnings - answer-Cumulative profits retained for
reinvestment.
Trade payables - answer-Liabilities to suppliers for
goods/services.
Accumulated depreciation - answer-Total depreciation
expense recorded over time.
Revaluation reserve - answer-Equity reserve from asset
revaluation increases.
Interest bearing borrowings - answer-Loans that incur
interest over time.
, Page 2 of 62
Bank overdraft - answer-Negative bank balance due to
withdrawals.
Land and buildings - answer-Real estate assets recorded at
valuation.
Plant and equipment - answer-Tangible assets used in
production.
Trade receivables - answer-Amounts owed by customers for
sales.
Inventories - answer-Goods available for sale in business.
Loan to ABC Limited - answer-Debt owed by ABC Limited to
XYZ Limited.
Investment in ABC Limited - answer-Equity stake in another
company at cost.
Consolidated statement - answer-Combined financial
statement of parent and subsidiary.
Companies Act, 1973 - answer-Legislation governing
company operations in South Africa.
, Page 3 of 62
Unrealised profit - answer-Profit not yet realized through
sale.
Closing inventories - answer-Ending stock value at financial
period's close.
Depreciation method - answer-Systematic allocation of
asset cost over time.
Financial year - answer-12-month period for financial
reporting.
Multiple choice questions - answer-Assessment format with
several answer options.
Trial balance - answer-Summary of all ledger balances at a
point.
Acquisition date - answer-Date when ownership of an asset
is obtained.
Profit on sale - answer-Earnings from selling an asset above
cost.
, Page 4 of 62
Retained earnings - answer-Cumulative profits not
distributed as dividends.
Non-controlling interest - answer-Equity in a subsidiary not
owned by parent.
Land and buildings - answer-Real estate assets in financial
position.
Plant and equipment - answer-Tangible fixed assets used in
operations.
Trade and other receivables - answer-Amounts owed by
customers and other parties.
Inventories - answer-Goods available for sale or production.
Cash and cash equivalents - answer-Liquid assets available
for immediate use.
Bank overdraft - answer-Negative bank balance exceeding
available funds.
Trade and other payables - answer-Amounts owed to
suppliers and creditors.
