100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
FAC 1502 EXAM PACK: CONCEPTS, CALCULATIONS, FORMULAS & TRANSACTIONS 2022 R50,00   Add to cart
Quickly navigate to
Preview
  2.  
  3. FAC 1502 - FINANCIAL ACCOUNTING
  4.  
  5. FAC 1502 - FINANCIAL ACCOUNTING

Exam (elaborations)

FAC 1502 EXAM PACK: CONCEPTS, CALCULATIONS, FORMULAS & TRANSACTIONS 2022
 32 views  0 purchase

100% TRUSTED explanations, workings, concepts, transactions, calculations and formulas, to help you prepare and achieve a GUARANTEED A+ in your assignments and examinations.

Preview 2 out of 8  pages

Document information

  • July 26, 2022
  • 8
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (102)

Written for

All documents for this subject (2)

Seller

avatar-seller
Studipath

Reviews received

Content preview

BASIC CONCEPTS


Accounting
Accounting involves the recordings of transactions, in order to provide useful information for
decision-making. It is a specialised means of communication that conveys the financial
information of an entity. It is essential that the financial information is presented truly and
fairly. Users of financial information expect it to be accurate and comprehensive.



Accounting Cycle



1. Identify Transactions




2. Record Transactions




3. Post to general Ledger




4. Pre-adjustment Trial Balance




5. Adjustments




6. Post-adjustment Trial balance




7. Prepare Financial Statements

, (IFRS) – International Financial Reporting Standards


Accounting Entity
Any entity for which separate financial records are kept.



Economic Resource
It is a right that has the potential to produce economic benefits.


Economic Benefit
Benefits that can be quantified in terms of money generated. It can also be money saved
when costs are reduced.



Double Entry System
Every transaction has a dual effect on the elements of the Basic Accounting Equation
(BAE). After every transaction the BAE must balance.



Capital
Amount invested by the owner



Drawings
Amount of cash or value of goods withdrawn from the business by the owner for personal
use.



Credit Losses (Bad Debts)
They are losses expected to occur due to debtors not paying their debts to the entity.



Trial Balance
It is a summary of balances of all accounts recorded in the general ledger.



Periodic Inventory
It is an inventory valuation method in which inventories are physically counted at the end of a
specific period to determine the cost of goods sold. Purchase of inventory is recorded
directly into the inventory account at cost price. At the time of sale, the cost price of the
goods sold is transferred from the inventory account to the cost of sales account

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Studipath. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67447 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00
  • (0)
  Buy now