1 Accounting is the process of identifying, recording and communicating economic information to users to permit informed judgements and decision making. The Accounting equation is an integral component of accounting. REQUIRED Perform the following: Certificate Asia Pacific Institute of Information Technology 202207 AAQS002-3-C-BACC Individual Assignment Page 2 of 3 a) demonstrate the meaning of terms 'debit' and 'credit' and explain why it is critical to the accounting equation and field of accounting. Include diagrams to support your answer. (25 marks) b) interpret how these components, Debit and Credit relate to each other in financial statements. Include differences between cash and accrual accounting. Construct TWO (2) relevant examples. Expand the scope of examples to not just local but worldwide cases. (25 marks) (50 marks) QUESTION 2 a) Interpret the following accounting concepts and show an example for each concept of its' application in a business environment. i) Consistency ii) Historical cost b) Assess with explanations, the reasons: (i) the importance of preparing bank reconciliation (ii) the key components of a bank reconciliation (15 marks) (15 marks) b) Assess with explanations, the reasons: the importance of preparing bank reconciliation (i) (ii) the key components of a bank reconciliation (15 marks) (15 marks) Certificate Asia Pacific Institute of Information Technology 202207 AAQS002-3-C-BACC Individual Assignment Page 3 of 3 c) The financial performance of a company are shown via financial statements which are Statement of Financial Position, Statement of Comprehensive Income and Statement of Cash Flow. REQUIRED Assess the contents and differences between both statements in terms of the items disclosed and its' purpose. (20 marks) (Total: 50 marks) (Grand Total: 100 marks) -END OF QUESTIONS