ACCOUNTING, FAC1502, CHAPTER 1 ALL REVISION QUESTIONS AND
CORRECT ANSWERS (GRADED 100%) (2024 UPDATE)
1. Residual Value - ANSWER- Value of the asset which may remain at the end of it's useful
life.
2. Depreciation amount - ANSWER- Is the cost of an asset, or other amount substituted for
cost in financial statements, less its residual value.
3. Debtors - ANSWER- people who owe money.
4. Creditors - ANSWER- people who are owed money - ANSWER-
5. Bookkeeping - ANSWER- Involves the identification and recording of economic events.
6. Accounting - ANSWER- orderly and systematic identification and recording of the
monetary value of the economic transactions of an individual entrepreneur(person) or a
business enterprise (entity or institution) , the reporting on the results of these transactions and
the provision of financial information by submitting financial statement which information is
used as a basis for decision making.
7. Measurement - ANSWER- the process of determining the amount to be disclosed for each
item in the financial statement.
8. Historical Cost - ANSWER- is the actual amount paid in cash (or cash equivalent) for the
particular assets, or the fair value of the item at the time it was acquired.
9. Historical cost of liabilities - ANSWER- is the amount of the proceeds recieved in exchange
for the obligation, it will be the amount paid to satisfy the liability
CORRECT ANSWERS (GRADED 100%) (2024 UPDATE)
1. Residual Value - ANSWER- Value of the asset which may remain at the end of it's useful
life.
2. Depreciation amount - ANSWER- Is the cost of an asset, or other amount substituted for
cost in financial statements, less its residual value.
3. Debtors - ANSWER- people who owe money.
4. Creditors - ANSWER- people who are owed money - ANSWER-
5. Bookkeeping - ANSWER- Involves the identification and recording of economic events.
6. Accounting - ANSWER- orderly and systematic identification and recording of the
monetary value of the economic transactions of an individual entrepreneur(person) or a
business enterprise (entity or institution) , the reporting on the results of these transactions and
the provision of financial information by submitting financial statement which information is
used as a basis for decision making.
7. Measurement - ANSWER- the process of determining the amount to be disclosed for each
item in the financial statement.
8. Historical Cost - ANSWER- is the actual amount paid in cash (or cash equivalent) for the
particular assets, or the fair value of the item at the time it was acquired.
9. Historical cost of liabilities - ANSWER- is the amount of the proceeds recieved in exchange
for the obligation, it will be the amount paid to satisfy the liability
