FAC1502: FINANCIAL ACCOUNTING
CONCEPTS; PROCEDURES AND
CONCEPTS Exam || 2026 Questions and
Answers Graded A+
ACCOUNTING - Correct answer-Planning; Recording; Analyzing; Interpreting
financial information.
PLANNING DECISIONS - Correct answer-Financial information is used to
determine future actions. Historical information provided by the accounting
process serves as a basis for forecasting.
CONTROL - Correct answer-Using financial information to evaluate the results of
financial activities.
THE FUNCTION OF ACCOUNTING - Correct answer-1. The value added to the
networth of a person/entity during a particular period.
2. The accumulated networth of that person/entity
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,PROFIT ENTITIES - Correct answer-Sole traders; Partnerships; Close
Corporations; Companies
NON-PROFIT ENTITES - Correct answer-Clubs; Charitable Organisations;
Churches; Educational Institutions; Trusts
PUBLIC SECTOR - Correct answer-The Government; Provinces; Departments;
Boards and Commissions; Municipalities
USERS OF FINANCIAL INFORMATION - Correct answer-1. Investors -
Providers of capital. Concerned with the risk involved in their investment. Need
information to decide whether to invest, hold, or withdraw funds.
2. Employees - Interested in entity's stability and profitability for benefits and job
security.
3. Lenders - Use financial information to determine if loans can be paid back with
interest.
4. Suppliers and other trade creditors - Use informations for assurance that
amounts owed are paid on time.
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, 5. Customers - Need to know the state of the entity for reliability.
6. Government and their agencies - Use financial information for taxation, policies,
and statistical purposes.
7. Public - Entities often contribute to the local economy by employing people and
local structures:
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME - Correct answer-Financial results --> Financial Performance (financial
period) ---> Financial Position
STATEMENT OF CHANGES IN EQUITY - Correct answer-Reflects the profit or
total comprehensive income and reflects the capital or equity.
STATEMENT OF FINANCIAL POSITION - Correct answer-Reflects the
networth of the entity at a specific time. Determined in terms of assets and
interests. Affected by the entity's economic resources, structure, liquidity, solvency,
capacity to adapt to economic changes.
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CONCEPTS; PROCEDURES AND
CONCEPTS Exam || 2026 Questions and
Answers Graded A+
ACCOUNTING - Correct answer-Planning; Recording; Analyzing; Interpreting
financial information.
PLANNING DECISIONS - Correct answer-Financial information is used to
determine future actions. Historical information provided by the accounting
process serves as a basis for forecasting.
CONTROL - Correct answer-Using financial information to evaluate the results of
financial activities.
THE FUNCTION OF ACCOUNTING - Correct answer-1. The value added to the
networth of a person/entity during a particular period.
2. The accumulated networth of that person/entity
©COPYRIGHT 2026, ALL RIGHTS RESERVED 1
,PROFIT ENTITIES - Correct answer-Sole traders; Partnerships; Close
Corporations; Companies
NON-PROFIT ENTITES - Correct answer-Clubs; Charitable Organisations;
Churches; Educational Institutions; Trusts
PUBLIC SECTOR - Correct answer-The Government; Provinces; Departments;
Boards and Commissions; Municipalities
USERS OF FINANCIAL INFORMATION - Correct answer-1. Investors -
Providers of capital. Concerned with the risk involved in their investment. Need
information to decide whether to invest, hold, or withdraw funds.
2. Employees - Interested in entity's stability and profitability for benefits and job
security.
3. Lenders - Use financial information to determine if loans can be paid back with
interest.
4. Suppliers and other trade creditors - Use informations for assurance that
amounts owed are paid on time.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 2
, 5. Customers - Need to know the state of the entity for reliability.
6. Government and their agencies - Use financial information for taxation, policies,
and statistical purposes.
7. Public - Entities often contribute to the local economy by employing people and
local structures:
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME - Correct answer-Financial results --> Financial Performance (financial
period) ---> Financial Position
STATEMENT OF CHANGES IN EQUITY - Correct answer-Reflects the profit or
total comprehensive income and reflects the capital or equity.
STATEMENT OF FINANCIAL POSITION - Correct answer-Reflects the
networth of the entity at a specific time. Determined in terms of assets and
interests. Affected by the entity's economic resources, structure, liquidity, solvency,
capacity to adapt to economic changes.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 3
