| University | Murdoch University (MU) |
| Subject | Accounting |
Question
a) Describe the general purpose of the statement of comprehensive income. In addition, explain the terms income and expenses as defined by the Conceptual Framework for Financial Reporting.
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b) Describe the general purpose of the statement of financial position. In addition, explain the terms asset, liability, and equity as defined by the Conceptual Framework for Financial Reporting.
c) Explain the accrual basis of accounting by defining the principles involved.
Illustrate your answer by taking the example of the cost of sales adjustment in the statement of comprehensive income.
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