FAC1601 Assignment 2 Complete Answers 2025/2026 || Verified Accounting
Solutions
Description: FAC1601 Assignment 2 study guide with complete verified answers
for 2025/2026. Covers accounting and financial reporting basics.
Keywords: FAC1601 assignment 2 answers accounting study guide 2025
FAC1601 verified solutions FAC1601 complete study resource accounting
assignment prep
FAC1601 Assignment 2: 100 Q&A Study Guide (Fundamentals)
Topic 1: The Conceptual Framework & Accounting Environment
1. What is the primary objective of financial reporting?
A) To provide information to management for decision-making.
B) To compute the tax liability of the company.
C) To record every single business transaction.
, D) To provide financial information that is useful to existing and
potential investors, lenders, and other creditors in making decisions about
providing resources to the entity.
2. What are the two fundamental qualitative characteristics of useful
financial information?
A) Relevance and Faithful Representation.
B) Timeliness and Understandability.
C) Comparability and Verifiability.
D) Materiality and Cost.
3. An item is considered to be ________ if its omission or misstatement
could influence the economic decisions of users.
A) conservative
B) comparable
C) material
D) consistent
4. The assumption that a business will continue in operation for the
foreseeable future is the:
A) Economic Entity Assumption.
B) Going Concern Assumption.
, C) Monetary Unit Assumption.
D) Periodicity Assumption.
5. The principle that requires companies to record expenses in the same
period as the revenues they helped to generate is the:
A) Revenue Recognition Principle.
B) Expense Recognition Principle (Matching Principle).
C) Cost Principle.
D) Full Disclosure Principle.
6. Assets are initially recorded at their historical cost according to the:
A) Fair Value Principle.
B) Cost Principle.
C) Matching Principle.
D) Going Concern Assumption.
7. Which of the following is NOT a key element of financial statements
under the Conceptual Framework?
A) Asset
B) Liability
C) Equity
D) Profit
Solutions
Description: FAC1601 Assignment 2 study guide with complete verified answers
for 2025/2026. Covers accounting and financial reporting basics.
Keywords: FAC1601 assignment 2 answers accounting study guide 2025
FAC1601 verified solutions FAC1601 complete study resource accounting
assignment prep
FAC1601 Assignment 2: 100 Q&A Study Guide (Fundamentals)
Topic 1: The Conceptual Framework & Accounting Environment
1. What is the primary objective of financial reporting?
A) To provide information to management for decision-making.
B) To compute the tax liability of the company.
C) To record every single business transaction.
, D) To provide financial information that is useful to existing and
potential investors, lenders, and other creditors in making decisions about
providing resources to the entity.
2. What are the two fundamental qualitative characteristics of useful
financial information?
A) Relevance and Faithful Representation.
B) Timeliness and Understandability.
C) Comparability and Verifiability.
D) Materiality and Cost.
3. An item is considered to be ________ if its omission or misstatement
could influence the economic decisions of users.
A) conservative
B) comparable
C) material
D) consistent
4. The assumption that a business will continue in operation for the
foreseeable future is the:
A) Economic Entity Assumption.
B) Going Concern Assumption.
, C) Monetary Unit Assumption.
D) Periodicity Assumption.
5. The principle that requires companies to record expenses in the same
period as the revenues they helped to generate is the:
A) Revenue Recognition Principle.
B) Expense Recognition Principle (Matching Principle).
C) Cost Principle.
D) Full Disclosure Principle.
6. Assets are initially recorded at their historical cost according to the:
A) Fair Value Principle.
B) Cost Principle.
C) Matching Principle.
D) Going Concern Assumption.
7. Which of the following is NOT a key element of financial statements
under the Conceptual Framework?
A) Asset
B) Liability
C) Equity
D) Profit
