Accounting process
It involves collecting invoices, receipts and etc.
Source document
The assumption that the records of assets, liabilities and business activities of the entity are kept completely separate from those of the owner of the entity as well as from those of other entities
Accounting Entity Assumption
Financial information should be of the real-world economic event it claims to represent: complete, free from material error and neutral
Faithful Representation
A place where people save their money
Bank
It's an Australian animal which sleeps on the tree and commonly mistaken for a bear
Koala
It involves preparing journals and inventory cards.
recording
The assumption that the business will continue to operate in the future, and its records are kept on that basis
Going Concern Assumption
Source Documents
Verifiability
A place in the city where you can watch a film
Cinema
Which Australian animal that carry their babies in pouches
Kangaroos
It involves preparing cash flow statement, income statement and balance sheet.
Reporting
The assumption that reports are prepared for a particular period of time, such as a month or year, in order to obtain comparability of results
Period Assumption
Which qualitative characteristic relates to ensuring that financial reports are prepared on-time rather than several years late?
Timeliness
A place where people can drink coffee
Cafe
It's an Australian animal which looks like a duck
platypus
Credit purchases are recorded here
purchases journal
Elements of the reports are recognized and reported when they satisfy the definitions and recognition criteria for those elements
Accrual Basis Assumption
The need to represent financial data in graphical form
Understandability
There is a very big collection of books
Library
What wild Australian animal looks like a dog
Dingo
Credit sales are recorded here
sales journal
Can be one month, quarterly, or yearly
accounting period
Financial information must be capable of making a difference to the decisions made by users by helping them to form predictions and/or confirm or change their previous evaluations
Relevance
A very high building
Skyscraper
Which Australian animal does square poos?
Wombat