Academic Year 2026–2027 UNISA Assignment: Perspectives on
Accountancy (CAS1501) – Fully Solved Assignment with Verified
Answers, Marking-Guideline Alignment, Core Accounting Concepts
& Exam-Focused Study Guide
,Question 1:
What is the primary purpose of financial accounting?
• A) To assist in operational management
• B) To provide financial information to external stakeholders
• C) To ensure compliance with tax regulations
• D) To facilitate internal decision-making
Correct Option: C
Rationale: Financial accounting primarily aims to provide a clear picture of the financial
health of an organization to external stakeholders, such as investors, creditors, and
regulatory agencies.
Question 2:
Which principle requires companies to record expenses in the period they are incurred?
• A) The Revenue Recognition Principle
• B) The Matching Principle
• C) The Cost Principle
• D) The Conservatism Principle
Correct Option: B
Rationale: The Matching Principle dictates that expenses should be matched with the
revenues they generate in the same accounting period, ensuring accurate financial
reporting.
Question 3:
Which of the following is a major component of managerial accounting?
• A) Preparing financial statements
• B) Budgeting and forecasting
• C) Ensuring compliance with GAAP
• D) Conducting financial audits
Correct Option: B
,Rationale: Managerial accounting focuses on providing information for internal
management for planning, controlling, and decision-making purposes, including
budgeting and forecasting.
Question 4:
What does GAAP stand for in the context of accounting?
• A) General Accounting Application Protocol
• B) Generally Accepted Accounting Principles
• C) Government Accountability and Auditing Procedures
• D) Global Accounting and Auditing Policies
Correct Option: B
Rationale: GAAP stands for Generally Accepted Accounting Principles, which are the
standard framework of guidelines for financial accounting used in the United States.
Question 5:
Which financial statement summarizes a company's revenues and expenses over a
specific period?
• A) Income Statement
• B) Balance Sheet
• C) Cash Flow Statement
• D) Statement of Changes in Equity
Correct Option: A
Rationale: The Income Statement summarizes a company’s revenues and expenses
during a specific period, indicating how much profit or loss was generated.
Question 6:
What is the primary purpose of a balance sheet?
• A) To show the financial position of a company at a specific point in time
• B) To summarize revenues and expenses
• C) To track cash inflows and outflows
• D) To indicate profitability over time
Correct Option: A
, Rationale: A balance sheet provides a snapshot of a company's assets, liabilities, and
equity at a specific point in time, illustrating its financial position.
Question 7:
In accounting, what does "liquidity" refer to?
• A) The amount of equity held by shareholders
• B) The profitability of a business
• C) The ease with which assets can be converted into cash
• D) The overall financial stability of a company
Correct Option: C
Rationale: Liquidity measures how easily assets can be converted to cash to meet
short-term obligations.
Question 8:
What is the accounting equation?
• A) Assets + Liabilities = Equity
• B) Assets = Liabilities + Equity
• C) Revenue - Expenses = Net Income
• D) Liabilities - Assets = Equity
Correct Option: B
Rationale: The accounting equation (Assets = Liabilities + Equity) is fundamental to the
double-entry accounting system, showing the relationship between a company's
resources and its obligations.
Question 9:
Which of the following concepts is crucial for maintaining transparency and
accountability in accounting?
• A) Ethical standards
• B) Budgeting practices
• C) Financial forecasting
• D) Tax compliance
Accountancy (CAS1501) – Fully Solved Assignment with Verified
Answers, Marking-Guideline Alignment, Core Accounting Concepts
& Exam-Focused Study Guide
,Question 1:
What is the primary purpose of financial accounting?
• A) To assist in operational management
• B) To provide financial information to external stakeholders
• C) To ensure compliance with tax regulations
• D) To facilitate internal decision-making
Correct Option: C
Rationale: Financial accounting primarily aims to provide a clear picture of the financial
health of an organization to external stakeholders, such as investors, creditors, and
regulatory agencies.
Question 2:
Which principle requires companies to record expenses in the period they are incurred?
• A) The Revenue Recognition Principle
• B) The Matching Principle
• C) The Cost Principle
• D) The Conservatism Principle
Correct Option: B
Rationale: The Matching Principle dictates that expenses should be matched with the
revenues they generate in the same accounting period, ensuring accurate financial
reporting.
Question 3:
Which of the following is a major component of managerial accounting?
• A) Preparing financial statements
• B) Budgeting and forecasting
• C) Ensuring compliance with GAAP
• D) Conducting financial audits
Correct Option: B
,Rationale: Managerial accounting focuses on providing information for internal
management for planning, controlling, and decision-making purposes, including
budgeting and forecasting.
Question 4:
What does GAAP stand for in the context of accounting?
• A) General Accounting Application Protocol
• B) Generally Accepted Accounting Principles
• C) Government Accountability and Auditing Procedures
• D) Global Accounting and Auditing Policies
Correct Option: B
Rationale: GAAP stands for Generally Accepted Accounting Principles, which are the
standard framework of guidelines for financial accounting used in the United States.
Question 5:
Which financial statement summarizes a company's revenues and expenses over a
specific period?
• A) Income Statement
• B) Balance Sheet
• C) Cash Flow Statement
• D) Statement of Changes in Equity
Correct Option: A
Rationale: The Income Statement summarizes a company’s revenues and expenses
during a specific period, indicating how much profit or loss was generated.
Question 6:
What is the primary purpose of a balance sheet?
• A) To show the financial position of a company at a specific point in time
• B) To summarize revenues and expenses
• C) To track cash inflows and outflows
• D) To indicate profitability over time
Correct Option: A
, Rationale: A balance sheet provides a snapshot of a company's assets, liabilities, and
equity at a specific point in time, illustrating its financial position.
Question 7:
In accounting, what does "liquidity" refer to?
• A) The amount of equity held by shareholders
• B) The profitability of a business
• C) The ease with which assets can be converted into cash
• D) The overall financial stability of a company
Correct Option: C
Rationale: Liquidity measures how easily assets can be converted to cash to meet
short-term obligations.
Question 8:
What is the accounting equation?
• A) Assets + Liabilities = Equity
• B) Assets = Liabilities + Equity
• C) Revenue - Expenses = Net Income
• D) Liabilities - Assets = Equity
Correct Option: B
Rationale: The accounting equation (Assets = Liabilities + Equity) is fundamental to the
double-entry accounting system, showing the relationship between a company's
resources and its obligations.
Question 9:
Which of the following concepts is crucial for maintaining transparency and
accountability in accounting?
• A) Ethical standards
• B) Budgeting practices
• C) Financial forecasting
• D) Tax compliance
