Unit 1 Accounting Assumptions, Accounting Equation etc

State the four stages of the Accounting process.

(a)  

State two types of Accounting records.

• Journals and Inventory Cards

• Income statements and journals

• Balance sheet and Journals

• Cash flow statement and Inventory cards

State three types of Accounting reports.

(a)  

Explain why a business is assumed to have a life separate from its owner.

Explain how the application of the Accounting entity and Period assumptions ensures Relevance in the Accounting reports

Explain how the application of Verifiability assures Faithful representation in the Accounting reports.