ABKA202 - Accounting & Bookkeeping Fundamentals Assessment 2026 | The Career Academy NZ

Accounting and Bookkeeping Fundamentals

Read through the requirements below and complete all parts of the assessment and then save your work as either a Word document or a PDF file. Once you have saved your work click on the Assessment submission link within this topic and upload your completed assessment to your tutor for marking.

Learning outcomes

By the end of this assignment you will be able to: 

• Explain the key concepts and assumptions underlying accounting.
• Explain the principal qualitative characteristics and their effect on financial statements.
• List the different account categories and the type of accounts associated with each category.
• Distinguish between accounts receivable and accounts payable.     

Part A: Introduction to Accounting Basics

Required

Complete each question in the space provided and then submit your answers to your tutor for marking.

Question 1 

Question 2 

What part of the accounting equation is the debit side and what part is the credit side? Why must the accounting equation always balance?

A debit entry is an entry on the left-hand side and a credit entry is an entry on the right hand side of an account.  

The accounting equation states that the total value of assets must always be equal to the combined value of liabilities and owner’s equity. Therefore, it must always be kept in balance.

Question 3

Explain in your own words each of the following Qualitative Characteristics of financial information:

a. Relevance

Relevance refers to how helpful the information is for financial decision-making processes. In order to be relevant it must provide information about past events or possible future events.

b. Faithful Representation

Faithful representation is when information is free from error and bias, representative of that which it purports to represent and that the information provided is considered verifiable. 

c. Comparability

Comparable information enables comparisons within the entity and across entities.

When comparisons are made within the entity, information is compared from one accounting period to another.  

Comparability of information across entities enables analysis of similarities and differences between different companies.

d. Understandability

Understandability is the degree to which information is understood or comprehended by its users. It is improper to exclude complex items just to make the reports simple and understandable for its users.

Part B: The Accounting Equation.

Required

Complete the table provided to you and then submit your answers to your tutor for marking. The first account has been provided to you.

Question 1

Question 2

As you will have learnt in the lesson, for every transaction 2 or more accounts are affected. The double entry method of accounting highlights that there will also be a balance in Debits and Credits.

Below are several transactions listed with their respective amounts.  Please fill in the missing values in these general journals. The first transaction has been provided to you.

Account list:

• Bank 
• Revenue
• Account Receivable
• Short – term Loan 
• Electricity Expense