FINANCIAL ACCOUNTING FAC 1502
EXAM QUESTIONS AND ANSWERS
Non-current Assets - Answer- land and buildings
Furniture and equipment
Vehicles
Financial Assets
Non-current Asset - Answer- Assets of a more permanent nature which are essential
in the process of earning income
Current Asset - Answer- Assets which have a short lifespan and continually change
in the normal course of business
Current Assets - Answer- inventories
Debtors
Bills received
Cash at the bank
Asset - Answer- A resource controlled by the entity as a result of past events and
from which future economic benefits are expected to flow to the entity
Liabilities - Answer- Present obligations of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity
Non-current liability - Answer- Long-term debts, which have to be settled after one
year of the date of the statement of financial position
Current Liability - Answer- Debts that have to be settled in the short-term, usually
within a year from the date of the statement of financial position
Non-current Liabilities - Answer- Long-term based loans
Mortgages
Debentures
Current Liabilities - Answer- Creditors
Bank overdrafts
Equity - Answer- Assets - Liabilities
Basic Accounting Equation (BAE) - Answer- Assets=Equity+Liabilities
Income - Answer- Increases in economic benefits during the accounting period in the
form of inflows or enhancements of assets
Revenue - Answer- Earned from the entity's ordinary activities
EXAM QUESTIONS AND ANSWERS
Non-current Assets - Answer- land and buildings
Furniture and equipment
Vehicles
Financial Assets
Non-current Asset - Answer- Assets of a more permanent nature which are essential
in the process of earning income
Current Asset - Answer- Assets which have a short lifespan and continually change
in the normal course of business
Current Assets - Answer- inventories
Debtors
Bills received
Cash at the bank
Asset - Answer- A resource controlled by the entity as a result of past events and
from which future economic benefits are expected to flow to the entity
Liabilities - Answer- Present obligations of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity
Non-current liability - Answer- Long-term debts, which have to be settled after one
year of the date of the statement of financial position
Current Liability - Answer- Debts that have to be settled in the short-term, usually
within a year from the date of the statement of financial position
Non-current Liabilities - Answer- Long-term based loans
Mortgages
Debentures
Current Liabilities - Answer- Creditors
Bank overdrafts
Equity - Answer- Assets - Liabilities
Basic Accounting Equation (BAE) - Answer- Assets=Equity+Liabilities
Income - Answer- Increases in economic benefits during the accounting period in the
form of inflows or enhancements of assets
Revenue - Answer- Earned from the entity's ordinary activities
