FAC1502: FINANCIAL ACCOUNTING CONCEPTS; PROCEDURES
AND CONCEPTS EXAM 2026 WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
ACCOUNTING - ANSWER-Planning; Recording; Analyzing; Interpreting financial
information.
PLANNING DECISIONS - ANSWER-Financial information is used to determine future
actions. Historical information provided by the accounting process serves as a basis for
forecasting.
CONTROL - ANSWER-Using financial information to evaluate the results of financial
activities.
THE FUNCTION OF ACCOUNTING - ANSWER-1. The value added to the networth of a
person/entity during a particular period.
2. The accumulated networth of that person/entity
PROFIT ENTITIES - ANSWER-Sole traders; Partnerships; Close Corporations; Companies
NON-PROFIT ENTITES - ANSWER-Clubs; Charitable Organisations; Churches;
Educational Institutions; Trusts
PUBLIC SECTOR - ANSWER-The Government; Provinces; Departments; Boards and
Commissions; Municipalities
USERS OF FINANCIAL INFORMATION - ANSWER-1. Investors - Providers of capital.
Concerned with the risk involved in their investment. Need information to decide whether
to invest, hold, or withdraw funds.
,2. Employees - Interested in entity's stability and profitability for benefits and job
security.
3. Lenders - Use financial information to determine if loans can be paid back with
interest.
4. Suppliers and other trade creditors - Use informations for assurance that amounts
owed are paid on time.
5. Customers - Need to know the state of the entity for reliability.
6. Government and their agencies - Use financial information for taxation, policies, and
statistical purposes.
7. Public - Entities often contribute to the local economy by employing people and local
structures:
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - ANSWER-
Financial results --> Financial Performance (financial period) ---> Financial Position
STATEMENT OF CHANGES IN EQUITY - ANSWER-Reflects the profit or total
comprehensive income and reflects the capital or equity.
STATEMENT OF FINANCIAL POSITION - ANSWER-Reflects the networth of the entity at a
specific time. Determined in terms of assets and interests. Affected by the entity's
economic resources, structure, liquidity, solvency, capacity to adapt to economic
changes.
STATEMENT OF CASH FLOWS - ANSWER-The ability to generate cash will determine
whether the entity will be able to meet its economic comittments.
, DOMAINS OF ACCOUNTING - ANSWER-1. Financial accounting: External users -
Creditors; Clients; Banking institutions.
2. Management accounting: Internal users - Management; Personnel
ACCOUNTING PRINCIPLES - ANSWER-The techniques used in the practice of
accounting. Conceptual and Theoretical.
ACCOUNTING POLICY - ANSWER-A set of decisions abut how the entity will handle the
same type of transaction in order to achieve consistency.
INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) - ANSWER-A general
framework and accounting concepts; pricinciples; methods and procedures.
ACCOUNTING STANDARDS AND STATEMENTS - ANSWER-Aim to encourage widespread
use of particular standards to eliminate bad alternatives.
GOING CONCERN ASSUMPTION - ANSWER-assumes an entity will remain in operation
for the foreseeable future.
QUALITIVE CHARACTERISTICS OF FINANCIAL STATEMENTS - ANSWER-Attributes that
make the information provided in financial statements useful. Relevance; Faithful
Presentation; Comparibility; Verifiability; Timeliness; Understandability
ELEMENTS OF FNANCIAL STATEMENTS - ANSWER-Financial Position - Assets;
Liabilities; Equity; Financial Performance - Income; Expenses
RECOGNITION OF ELEMENTS OF FINANCIAL STATEMENTS - ANSWER-1. Concept of
Profitability - Used in the recognition criteria
2. Reliability of Measure - An item must possess a cost or value that can be measured
reliably before it can be recognized.
ACCOUNTING ENTITY - ANSWER-Is the organization for with financial data are to be
collected.
AND CONCEPTS EXAM 2026 WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
ACCOUNTING - ANSWER-Planning; Recording; Analyzing; Interpreting financial
information.
PLANNING DECISIONS - ANSWER-Financial information is used to determine future
actions. Historical information provided by the accounting process serves as a basis for
forecasting.
CONTROL - ANSWER-Using financial information to evaluate the results of financial
activities.
THE FUNCTION OF ACCOUNTING - ANSWER-1. The value added to the networth of a
person/entity during a particular period.
2. The accumulated networth of that person/entity
PROFIT ENTITIES - ANSWER-Sole traders; Partnerships; Close Corporations; Companies
NON-PROFIT ENTITES - ANSWER-Clubs; Charitable Organisations; Churches;
Educational Institutions; Trusts
PUBLIC SECTOR - ANSWER-The Government; Provinces; Departments; Boards and
Commissions; Municipalities
USERS OF FINANCIAL INFORMATION - ANSWER-1. Investors - Providers of capital.
Concerned with the risk involved in their investment. Need information to decide whether
to invest, hold, or withdraw funds.
,2. Employees - Interested in entity's stability and profitability for benefits and job
security.
3. Lenders - Use financial information to determine if loans can be paid back with
interest.
4. Suppliers and other trade creditors - Use informations for assurance that amounts
owed are paid on time.
5. Customers - Need to know the state of the entity for reliability.
6. Government and their agencies - Use financial information for taxation, policies, and
statistical purposes.
7. Public - Entities often contribute to the local economy by employing people and local
structures:
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - ANSWER-
Financial results --> Financial Performance (financial period) ---> Financial Position
STATEMENT OF CHANGES IN EQUITY - ANSWER-Reflects the profit or total
comprehensive income and reflects the capital or equity.
STATEMENT OF FINANCIAL POSITION - ANSWER-Reflects the networth of the entity at a
specific time. Determined in terms of assets and interests. Affected by the entity's
economic resources, structure, liquidity, solvency, capacity to adapt to economic
changes.
STATEMENT OF CASH FLOWS - ANSWER-The ability to generate cash will determine
whether the entity will be able to meet its economic comittments.
, DOMAINS OF ACCOUNTING - ANSWER-1. Financial accounting: External users -
Creditors; Clients; Banking institutions.
2. Management accounting: Internal users - Management; Personnel
ACCOUNTING PRINCIPLES - ANSWER-The techniques used in the practice of
accounting. Conceptual and Theoretical.
ACCOUNTING POLICY - ANSWER-A set of decisions abut how the entity will handle the
same type of transaction in order to achieve consistency.
INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) - ANSWER-A general
framework and accounting concepts; pricinciples; methods and procedures.
ACCOUNTING STANDARDS AND STATEMENTS - ANSWER-Aim to encourage widespread
use of particular standards to eliminate bad alternatives.
GOING CONCERN ASSUMPTION - ANSWER-assumes an entity will remain in operation
for the foreseeable future.
QUALITIVE CHARACTERISTICS OF FINANCIAL STATEMENTS - ANSWER-Attributes that
make the information provided in financial statements useful. Relevance; Faithful
Presentation; Comparibility; Verifiability; Timeliness; Understandability
ELEMENTS OF FNANCIAL STATEMENTS - ANSWER-Financial Position - Assets;
Liabilities; Equity; Financial Performance - Income; Expenses
RECOGNITION OF ELEMENTS OF FINANCIAL STATEMENTS - ANSWER-1. Concept of
Profitability - Used in the recognition criteria
2. Reliability of Measure - An item must possess a cost or value that can be measured
reliably before it can be recognized.
ACCOUNTING ENTITY - ANSWER-Is the organization for with financial data are to be
collected.
