FAC1502 Financial Accounting Principles & Exam
Prep Notes- UNISA NEW verified A+ tips
1. ACCOUNTING: Planning; Recording; Analyzing; Interpreting financial information.
2. PLANNING DECISIONS: Financial information is used to determine future actions. Historical informa-
tion provided by the accounting process serves as a basis for forecasting.
3. CONTROL: Using financial information to evaluate the results of financial activities.
4. THE FUNCTION OF ACCOUNTING: 1. The value added to the networth of a person/entity during
a particular period.
2. The accumulated networth of that person/entity
5. PROFIT ENTITIES: Sole traders; Partnerships; Close Corporations; Companies
6. NON-PROFIT ENTITES: Clubs; Charitable Organisations; Churches; Educational Institutions; Trusts
7. PUBLIC SECTOR: The Government; Provinces; Departments; Boards and Commissions; Municipalities
8. USERS OF FINANCIAL INFORMATION: 1. Investors - Providers of capital. Concerned with the risk
involved in their investment. Need information to decide whether to invest, hold, or withdraw funds.
2. Employees - Interested in entity's stability and profitability for benefits and job security.
3. Lenders - Use financial information to determine if loans can be paid back with interest.
4. Suppliers and other trade creditors - Use informations for assurance that amounts owed are paid on time.
5. Customers - Need to know the state of the entity for reliability.
6. Government and their agencies - Use financial information for taxation, policies, and statistical purposes.
7. Public - Entities often contribute to the local economy by employing people and local structures:
9. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME: Fi-
nancial results --> Financial Performance (financial period) ---> Financial Position
, 10. STATEMENT OF CHANGES IN EQUITY: Reflects the profit or total comprehensive income and
reflects the capital or equity.
11. STATEMENT OF FINANCIAL POSITION: Reflects the networth of the entity at a specific time.
Determined in terms of assets and interests. Attected by the entity's economic resources, structure, liquidity, solvency,
capacity to adapt to economic changes.
Prep Notes- UNISA NEW verified A+ tips
1. ACCOUNTING: Planning; Recording; Analyzing; Interpreting financial information.
2. PLANNING DECISIONS: Financial information is used to determine future actions. Historical informa-
tion provided by the accounting process serves as a basis for forecasting.
3. CONTROL: Using financial information to evaluate the results of financial activities.
4. THE FUNCTION OF ACCOUNTING: 1. The value added to the networth of a person/entity during
a particular period.
2. The accumulated networth of that person/entity
5. PROFIT ENTITIES: Sole traders; Partnerships; Close Corporations; Companies
6. NON-PROFIT ENTITES: Clubs; Charitable Organisations; Churches; Educational Institutions; Trusts
7. PUBLIC SECTOR: The Government; Provinces; Departments; Boards and Commissions; Municipalities
8. USERS OF FINANCIAL INFORMATION: 1. Investors - Providers of capital. Concerned with the risk
involved in their investment. Need information to decide whether to invest, hold, or withdraw funds.
2. Employees - Interested in entity's stability and profitability for benefits and job security.
3. Lenders - Use financial information to determine if loans can be paid back with interest.
4. Suppliers and other trade creditors - Use informations for assurance that amounts owed are paid on time.
5. Customers - Need to know the state of the entity for reliability.
6. Government and their agencies - Use financial information for taxation, policies, and statistical purposes.
7. Public - Entities often contribute to the local economy by employing people and local structures:
9. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME: Fi-
nancial results --> Financial Performance (financial period) ---> Financial Position
, 10. STATEMENT OF CHANGES IN EQUITY: Reflects the profit or total comprehensive income and
reflects the capital or equity.
11. STATEMENT OF FINANCIAL POSITION: Reflects the networth of the entity at a specific time.
Determined in terms of assets and interests. Attected by the entity's economic resources, structure, liquidity, solvency,
capacity to adapt to economic changes.
