Accounting principles and assumptions

Q1. Discuss three of the accounting principles and assumptions with examples. (1 Mark)
Q2. In chapter 3, slide 42, there is a summary of the accounting cycle. Describe each step. (2 Marks)
Q3. Explain the purpose and the importance of the income statement, and prepare the income
statement for ABC company based on the following information taken from the trial balance in 2020
(2 Marks)
Consulting revenue SAR50,000
Rental revenue 20,000
Supplies expense 5,000
Rent expense 30,000
Wages expense 15,

Sample Solution