FAC1502 FINANCIAL ACCOUNTING MODULE REVIEW NOTES AND FUNDAMENTAL ACCOUNTING CONCEPTS 2026 MASTER RESOURCE

FAC1502 FINANCIAL ACCOUNTING
MODULE REVIEW NOTES AND
FUNDAMENTAL ACCOUNTING CONCEPTS
2026 MASTER RESOURCE
◉ ACCRUED INCOME
Answer: Income which relates to the current financial period but
which has not yet been received.
Income Account - Cr (Credit)


◉ CREDIT LOSSES
Answer: Assets will decrease and an expense account or loss
component will be created. The debt will be written off against the
profit and loss account at the end of the year.
Asset Account - Cr (Credit) ---> Trade Receivables - Cr (Credit) --->
Credit Losses - Dr (Debit)


◉ LONG TERM ADJUSTMENTS
Answer: 1. Depreciation


◉ DEPRECIATION
Answer: A lessening in value.

, Depreciation Account - Dr (Debit) ; The expense will be written off
against the profit and loss accounts.


◉ PREPERATION OF THE TRIAL BALANCE
Answer: 1. Pre-adjustment trial balance
2. Post-adjustment trial balance
3. Post-closing trial balance


◉ PRE-ADJUSTMENT TRIAL BALANCE
Answer: Compiled to rest correctness of the entries after the posting
from the subsidiary journals to the general journal.


◉ POST-ADJUSTMENT TRIAL BALANCE
Answer: Compiled fter all journalised adjustments have been posted
to the general ledger.


◉ POST-CLOSING TRIAL BALANCE
Answer: Compiled after closing journal entries have been posted to
the ledger. All nominal accounts are closed and the profit or loss;
drawings are transferred to the capital account.


◉ FINANCIAL PERFORMANCE OF A SERVICE ENTITY