FAC1501
Assignment 1
Semester 1
Questions and
Answers 2020
, 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.
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.
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
Assignment 1
Semester 1
Questions and
Answers 2020
, 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.
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.
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
