FAC1502 Unit 1 Exam Study
Guide – Practice Questions with
Verified Answers. GRADED A+.
Latest 2026/2027 Update
what is accounting - Answer✔ - identifying those events that are evidence of
economic activity relevant to particular business or entity
-recording monetary value of economic events in order to provide a permanent
history. Recording involves keeping chronological diary of measured events
-communicating the recorded information to intrested users
Golden Rule of accounting - Answer✔ - Accounting involves the recordings of
transactions in order to provide useful information for decision making
Objectives of accounting - Answer✔ - Did the entity trade at a profit or a loss?
-What was the income of the entity and what expenses were incurred in
producing that income?
-How much does the entity owe to other entities?
-How much do customers owe to the entity?
, -What is the nature of the assets that the entity possesses and what is the amount
(in value) of the various kinds of property and other assets that the entity
possesses?
-What is the amount of the entity's capital (equity)?
Bookkeeping - Answer✔ - The daily recording of business transactions from
source documents in such a way that entities or businesses can determining their
exact financial position
Nature of accounting - Answer✔ - specialised means of communication that
conveys a specialised message about an entities finance
purpose of accounting - Answer✔ - • Can the entity generate enough income to
exist?
• What are the entity's expenses in relation to its sales?
• Is too little or too much inventory being kept?
• Should the entity expand its operations?
• Is the entity's pricing policy correct?
Financial accounting cycle - Answer✔ - TRANSACTION DATA INPUT ↓ record on
↓
SOURCE DOCUMENTS ↓
prepare ↓
SUBSIDIARY JOURNALS → → → → →
Update↓ post to ↓ SUBSIDIARY
Guide – Practice Questions with
Verified Answers. GRADED A+.
Latest 2026/2027 Update
what is accounting - Answer✔ - identifying those events that are evidence of
economic activity relevant to particular business or entity
-recording monetary value of economic events in order to provide a permanent
history. Recording involves keeping chronological diary of measured events
-communicating the recorded information to intrested users
Golden Rule of accounting - Answer✔ - Accounting involves the recordings of
transactions in order to provide useful information for decision making
Objectives of accounting - Answer✔ - Did the entity trade at a profit or a loss?
-What was the income of the entity and what expenses were incurred in
producing that income?
-How much does the entity owe to other entities?
-How much do customers owe to the entity?
, -What is the nature of the assets that the entity possesses and what is the amount
(in value) of the various kinds of property and other assets that the entity
possesses?
-What is the amount of the entity's capital (equity)?
Bookkeeping - Answer✔ - The daily recording of business transactions from
source documents in such a way that entities or businesses can determining their
exact financial position
Nature of accounting - Answer✔ - specialised means of communication that
conveys a specialised message about an entities finance
purpose of accounting - Answer✔ - • Can the entity generate enough income to
exist?
• What are the entity's expenses in relation to its sales?
• Is too little or too much inventory being kept?
• Should the entity expand its operations?
• Is the entity's pricing policy correct?
Financial accounting cycle - Answer✔ - TRANSACTION DATA INPUT ↓ record on
↓
SOURCE DOCUMENTS ↓
prepare ↓
SUBSIDIARY JOURNALS → → → → →
Update↓ post to ↓ SUBSIDIARY
