Principles of Accounting- Assignment (1)

Principles of Accounting- Assignment (1)

Assignment Question(s):                                                    (Marks 10)

Q1. Discuss three of the accounting principles. Provide an example for each principle (3 Marks).

Q2. “Accounting takes in the process of Identifying, Recording and Communicating”. How would you explain the statement? Support your answer with examples on Identifying, Recording and Communicating. (3 Marks).

Q3. Record the journal entries for the following transactions (2 Marks).

• ABC paid salaries of SR800 to employees.
• ABC purchased equipment for SR2,000 cash.
• ABC purchased SR5,000 of merchandise on credit.
• ABC Borrowed SR10,000 from AL Rajhi Bank.

Q4. In what aspects are merchandising companies different from service companies (2 Marks).