FIN2603 Assignment 1 Semester 1 2026 Due 16 March 2026

University of South Africa
College of Accounting Sciences




Finance for Non-Financial Managers
Principles, Applications and Financial Ratio Analysis




Module Code: FIN2603

Assignment 1




Student Name: [Student Name]
Student Number: [Student Number]
Submission Date: 16 March 2026
Assessment Type: Written Assignment




“Accounting is the language of business; clarity and precision are non-negotiable.”




© UNISA. All rights reserved.

This document follows APA 7th edition referencing standards.

, UNISA | Fundamental Accounting Concepts Module:FIN2603



Contents


1 Fundamental Accounting Concepts: Part A 3

1.1 1. Accounting Entity Concept (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.2 2. Conservatism Principle (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.3 3. Consistency Concept (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.4 4. Historical Cost Principle (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.5 5. Going-Concern Concept (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.6 6. Realisation Principle (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.7 7. Accrual Principle (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


2 Fundamental Accounting Concepts: Part B 6

2.1 1. Business Entity Concept (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.2 2. Materiality Principle (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.3 3. Prudence Principle (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.4 4. Monetary Measurement Concept (1) . . . . . . . . . . . . . . . . . . . . . . . . 7

2.5 5. Periodicity Concept (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.6 6. Matching Principle (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.7 7. Full Disclosure Principle (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8


3 Financial Ratio Analysis: Silver Peak Manufacturing (Pty) Ltd 9

3.1 2.1 Gross Profit Margin (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.2 2.2 Current Ratio (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.3 2.3 Return on Investment (ROI) (2) . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.4 2.4 Earnings Per Share (EPS) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.5 2.5 Dividend Per Share (DPS) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


Page 1 of 12