FAC1601 Assignment 1 semester 1 of 2023

FAC1601 ASSIGNMENT 1 – SEMESTER 1 OF
2023


Question 1

Question text

Which of the following statements is correct:



1.

A liability is a future obligation of a reporting entity to transfer an economic resource as a
result of a past event.


2.

The accounting equation is: Liabilities + Assets = equity


3.

The value of a reporting entity lies in the net assets (assets minus liabilities) under its
control.


4.

Equity is the residual interest in the assets of the entity after deducting all the expenses.

Question 2

The definition of an asset is:


1.

A present economic resource controlled by a reporting entity as a result of a future event.


2.


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,A future economic resource controlled by a reporting entity as a result of a past event.


3.

A future economic resource controlled by a reporting entity as a result of a future event.


4.

A present economic resource controlled by a reporting entity as a result of a past event.

Question 3

Question text

Which of the following measurement bases will often be encountered in a set of financial
statements:


1.

Present value


2.

Historical cost


3.

Fair value


4.

All of the above




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, Question 4

Question text

The statement of financial position consists of three elements namely:


1.

assets, income and expenses


2.

assets, liabilities and equity


3.

liabilities, equity and expenses


4.

liabilities, income and expenses

Question 5

Question text

BenMo purchased a MAN printing press for their printing business. Which one of the
following expenses should not be included in the cost the machine:


1.

Maintenance and repair costs


2.

Delivery costs


3.

Installation costs


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