FAC – Tutorial 1
Mrs Wings
,WHAT IS THE PURPOSE OF ACCOUNTING?
To measure the financial performance of the entity (profits or losses).
To measure the financial position of the entity (value of assets, equity, and
liabilities ).
To measure the cash flow position of the entity ( cash flow statement)
, ELEMENTS OF FINANCIAL STATEMENTS
ASSETS
Asset definition
-Resource
-Controlled by the entity
-that is expected to result in future economic benefits flowing to the entity.
There are two types of assets
Non current assets
Current assets
Mrs Wings
,WHAT IS THE PURPOSE OF ACCOUNTING?
To measure the financial performance of the entity (profits or losses).
To measure the financial position of the entity (value of assets, equity, and
liabilities ).
To measure the cash flow position of the entity ( cash flow statement)
, ELEMENTS OF FINANCIAL STATEMENTS
ASSETS
Asset definition
-Resource
-Controlled by the entity
-that is expected to result in future economic benefits flowing to the entity.
There are two types of assets
Non current assets
Current assets
