FAC1501
Introductory Financial Accounting
Assignment 01 for Semester 01 (compulsory)
Unique Number 793229
Due: 02 March 2020
Disclaimer
Distribution of this document is illegal.
Users may therefore not share, reproduce, duplicate, copy, sell, or resell this document.
I cannot guarantee results for the student. The opinions expressed are in good faith and while every
care has been taken in preparing this document, I make no representations and give no warranties of
whatever nature in respect of this document, including but not limited to the accuracy or
completeness of any information, facts and/or opinions contained therein.
The result of a student is dependent on many factors including a student’s study habits, and
engagement in study groups.
In no event will I be held liable for the use of and reliance of the opinions and findings in this document.
Before you answer the questions for this assignment, you must have studied learning units 1 to 5 of
your study guide.
Submit this assignment electronically via myUnisa or do it on a mark-reading sheet.
1. Financial accounting is …
(1) an action where money is paid and, in return an item or service that the buyer needs is
obtained.
(2) the orderly and systematic identification and recording of the monetary values of financial
transactions of an individual or business entity, and the reporting of the results of these
transactions.
(3) a process involving the selecting of those events that are evidence of an economic activity
irrelevant to the particular entity.
(4) a process involving only the calculation of the profit made by the entity.
(5) the systematic recording of transactions.
Answer:
Page 3 of the study guide:
1.2 WHAT IS FINANCIAL ACCOUNTING?
Financial accounting can be defined as the orderly and systematic identification and recording of the
monetary values of financial transactions of an individual or business entity, and the reporting of the
results of these transactions by way of the preparation and presentation of financial statements to
, enable the users to use the information obtained in these financial statements as a basis for decision
making. Financial accounting is a specialised method used to communicate financial information
about an entity and its activities to those persons or entities that have an interest in the activities of
the entity.
2. Government uses the accounting information contained in the financial statements to …
(1) regulate the activities of the entity.
(2) plan and determine future actions to be taken.
(3) assess the risk and return of an investment in the entity.
(4) assess the ability of the entity to pay amounts owing.
(5) assess the ability of the entity to continue as a going concern.
Answer:
Page 6 of the study guide:
1.7 USERS OF FINANCIAL STATEMENTS
Financial statements are prepared and presented at least once a year and are directed towards the
common information needs of a wide range of users. The following categories of users, and their
need for accounting information, have been identified:
User Information needs
Clients to assess the ability of the entity to continue as a going concern.
Employees to assess the ability of their employer to provide stable employment
and remuneration.
Government to regulate activities of the enterprise, compile statistics and
determine resource allocation and tax policies.
Investors to assess the risk and return on an investment in the enterprise.
Lenders to assess the ability of the enterprise to pay interest on a loan and to
repay loans.
Suppliers and other to assess the ability of the enterprise to pay amounts owing
creditors
Management ● planning, that is determining future actions to be taken;
or
● exercising control, that is evaluating the current situation and taking
corrective steps
3. Which one of the following variations of the accounting equation is incorrect?
(1) Liabilities = Assets - Equity
(2) Assets = Equity + Liabilities
(3) Equity = Assets + Liabilities
(4) Equity = Assets - Liabilities
(5) Assets = Liabilities + Equity
Answer:
Page 15 of the study guide:
The accounting equation states that:
Introductory Financial Accounting
Assignment 01 for Semester 01 (compulsory)
Unique Number 793229
Due: 02 March 2020
Disclaimer
Distribution of this document is illegal.
Users may therefore not share, reproduce, duplicate, copy, sell, or resell this document.
I cannot guarantee results for the student. The opinions expressed are in good faith and while every
care has been taken in preparing this document, I make no representations and give no warranties of
whatever nature in respect of this document, including but not limited to the accuracy or
completeness of any information, facts and/or opinions contained therein.
The result of a student is dependent on many factors including a student’s study habits, and
engagement in study groups.
In no event will I be held liable for the use of and reliance of the opinions and findings in this document.
Before you answer the questions for this assignment, you must have studied learning units 1 to 5 of
your study guide.
Submit this assignment electronically via myUnisa or do it on a mark-reading sheet.
1. Financial accounting is …
(1) an action where money is paid and, in return an item or service that the buyer needs is
obtained.
(2) the orderly and systematic identification and recording of the monetary values of financial
transactions of an individual or business entity, and the reporting of the results of these
transactions.
(3) a process involving the selecting of those events that are evidence of an economic activity
irrelevant to the particular entity.
(4) a process involving only the calculation of the profit made by the entity.
(5) the systematic recording of transactions.
Answer:
Page 3 of the study guide:
1.2 WHAT IS FINANCIAL ACCOUNTING?
Financial accounting can be defined as the orderly and systematic identification and recording of the
monetary values of financial transactions of an individual or business entity, and the reporting of the
results of these transactions by way of the preparation and presentation of financial statements to
, enable the users to use the information obtained in these financial statements as a basis for decision
making. Financial accounting is a specialised method used to communicate financial information
about an entity and its activities to those persons or entities that have an interest in the activities of
the entity.
2. Government uses the accounting information contained in the financial statements to …
(1) regulate the activities of the entity.
(2) plan and determine future actions to be taken.
(3) assess the risk and return of an investment in the entity.
(4) assess the ability of the entity to pay amounts owing.
(5) assess the ability of the entity to continue as a going concern.
Answer:
Page 6 of the study guide:
1.7 USERS OF FINANCIAL STATEMENTS
Financial statements are prepared and presented at least once a year and are directed towards the
common information needs of a wide range of users. The following categories of users, and their
need for accounting information, have been identified:
User Information needs
Clients to assess the ability of the entity to continue as a going concern.
Employees to assess the ability of their employer to provide stable employment
and remuneration.
Government to regulate activities of the enterprise, compile statistics and
determine resource allocation and tax policies.
Investors to assess the risk and return on an investment in the enterprise.
Lenders to assess the ability of the enterprise to pay interest on a loan and to
repay loans.
Suppliers and other to assess the ability of the enterprise to pay amounts owing
creditors
Management ● planning, that is determining future actions to be taken;
or
● exercising control, that is evaluating the current situation and taking
corrective steps
3. Which one of the following variations of the accounting equation is incorrect?
(1) Liabilities = Assets - Equity
(2) Assets = Equity + Liabilities
(3) Equity = Assets + Liabilities
(4) Equity = Assets - Liabilities
(5) Assets = Liabilities + Equity
Answer:
Page 15 of the study guide:
The accounting equation states that:
