Accounting question

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 revenue20,000

Supplies expense 5,000

Rent expense 30,000

Wages expense 15,000

Sample Solution