FAC1503 Assessment 1 Questions and answers
Question 2
The following transactions relate to SA Attorneys for the month of January 2022. SA Attorneys are not registered as
a VAT vendor.
Date Transactions
2022
Jan 7 Obtained a loan from SA Bank and received cash – R24 200.
Jan 22 Paid the monthly insurance per cheque – R3 300.
Which option reflects the correct net influence of the above transactions on the accounting equation of SA
Attorneys for January 2022?
Select one:
a.
Assets Equity Liabilities
R R R
+ 20 900 - 3 300 + 24 200
b.
Assets Equity Liabilities
R R R
- 20 900 + 3 300 + 24 200
c.
Assets Equity Liabilities
R R R
+ 20 900 + 3 300 + 24 200
d.
Assets Equity Liabilities
R R R
- 3 300 + 20 900 + 24 200
Refer to learning unit 2.4 and examples 2.4, 2.8
The correct answer is:
Assets Equity Liabilities
R R R
+ 20 900 - 3 300
+ 24 200
, Question 4
Match the description in column A to the correct description provided in the drop-down list. You can use the same
description multiple times and leave out other descriptions.
The Rules- rules of the attorney’s profession
IASB- international accounting standards board
IFRS- international financial reporting standards
FRSC- financial reporting standards council
IAS- international accounting standards
Question 5
An asset is …
Select one:
a.
a decrease in economic benefits during the accounting period in the form of outflows or depletions of assets that
result in decreases in equity, other than those relating to distributions to equity participants.
b.
a present economic resource controlled by the entity as a result of past events.
c.
the increase in economic benefits of an entity during an accounting period which results in an increase in equity.
d.
a present obligation of the entity arising from past events the settlement of which is expected to result in an
outflow of resources from the entity embodying economic benefits.
Feedback
Refer to learning unit 1.6.1
The correct answer is: a present economic resource controlled by the entity as a result of past events.
Question 6
The International Financial Reporting Standards for Small and Medium Entities is not an acceptable standard in
terms of the Rules of the South African Legal Practice Council for the compilation of financial statements.
Select one:
True
False
Feedback
Refer to section 1.5 of learning unit 1
The correct answer is 'False'.
Question 2
The following transactions relate to SA Attorneys for the month of January 2022. SA Attorneys are not registered as
a VAT vendor.
Date Transactions
2022
Jan 7 Obtained a loan from SA Bank and received cash – R24 200.
Jan 22 Paid the monthly insurance per cheque – R3 300.
Which option reflects the correct net influence of the above transactions on the accounting equation of SA
Attorneys for January 2022?
Select one:
a.
Assets Equity Liabilities
R R R
+ 20 900 - 3 300 + 24 200
b.
Assets Equity Liabilities
R R R
- 20 900 + 3 300 + 24 200
c.
Assets Equity Liabilities
R R R
+ 20 900 + 3 300 + 24 200
d.
Assets Equity Liabilities
R R R
- 3 300 + 20 900 + 24 200
Refer to learning unit 2.4 and examples 2.4, 2.8
The correct answer is:
Assets Equity Liabilities
R R R
+ 20 900 - 3 300
+ 24 200
, Question 4
Match the description in column A to the correct description provided in the drop-down list. You can use the same
description multiple times and leave out other descriptions.
The Rules- rules of the attorney’s profession
IASB- international accounting standards board
IFRS- international financial reporting standards
FRSC- financial reporting standards council
IAS- international accounting standards
Question 5
An asset is …
Select one:
a.
a decrease in economic benefits during the accounting period in the form of outflows or depletions of assets that
result in decreases in equity, other than those relating to distributions to equity participants.
b.
a present economic resource controlled by the entity as a result of past events.
c.
the increase in economic benefits of an entity during an accounting period which results in an increase in equity.
d.
a present obligation of the entity arising from past events the settlement of which is expected to result in an
outflow of resources from the entity embodying economic benefits.
Feedback
Refer to learning unit 1.6.1
The correct answer is: a present economic resource controlled by the entity as a result of past events.
Question 6
The International Financial Reporting Standards for Small and Medium Entities is not an acceptable standard in
terms of the Rules of the South African Legal Practice Council for the compilation of financial statements.
Select one:
True
False
Feedback
Refer to section 1.5 of learning unit 1
The correct answer is 'False'.
