FAC1601 Assignment 1 Solutions First Semester 2023

FAC1601
ASSIGNMENT 1
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208




1

,Question 1



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.
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.




2

, Question 3
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


Question 4


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




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