FAC1503 Assignment 1 Semester 1 Questions and Answers [Level A+]2023

What is accounting - -1) Identify events that show economic activity 2) Provide a permanent recording of entity's economic activity 3) Communicate information to interested parties -Universal accounting denominator - -Money -Two limitations to using money as UAD - -We can't express all events in monetary value Money's value is unstable -Four main ownership form - -Closed corporation Sole trader Trust Partnership -Users who need financial information - -Investors Creditors Employees Government Management -Two categories of financial information uers - -Internal External -Two types of accounting - -Financial accounting Management accounting -Focus of financial accounting - -Prepare financial statements Record financial transactions -Generally Accepted Accounting Principles - -Regulates financial accounting