FAC1502 EXAM PACK LATEST

FAC1502 EXAM PACK LATEST 2025

Non-current Assets

land and buildings
Furniture and equipment
Vehicles
Financial Assets

Non-current Asset

Assets of a more permanent nature which are essential in the process of earning income

Brainpower

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Current Asset

Assets which have a short lifespan and continually change in the normal course of business

Current Assets

inventories
Debtors
Bills received
Cash at the bank

Asset

A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity

Liabilities

Present obligations of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity

Non-current liability

Long-term debts, which have to be settled after one year of the date of the statement of financial position

Current Liability

Debts that have to be settled in the short-term, usually within a year from the date of the statement of financial position

Non-current Liabilities

Long-term based loans
Mortgages
Debentures

Current Liabilities

Creditors
Bank overdrafts

Equity

Assets - Liabilities

Basic Accounting Equation (BAE)

Assets=Equity+Liabilities

Income

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets

Revenue

Earned from the entity's ordinary activities

Revenue examples

fees earned
sales
interest income
dividend income
rent income
commission
credit losses recovered

Gains

Increases of economic benefits which do not arise from normal activities of the entity

Voluntary TAX registration

Taxable supplies must exceed R50 000 in a 12 month period

TAX Vendor registration

Taxable supplies exceed R100 000 or expects to exceed over a 12 month period

Input Tax

VAT on those goods or services received

Output Tax

VAT added to goods or services supplied by vendor to other persons

VAT payable to SARS

Output Tax - Input tax