Topic 1 Introduction, double entry accounting and GST

BFA104 - Accounting Context and Method Workshop - Complete before class Topic 1 - Introduction, double entry accounting and GST Question 1 Watch the video lecture on \"Elements of Financial Statements\" and answer the following questions: a) List the three essential characteristics of an asset. b) List the three essential characteristics of a liability. c) To be included in the financial statements, an item not only has to meet the definition of one of the elements of financial statements but also has to satisfy two recognition criteria. What are these recognition criteria? Question 2 Discuss how the following underlying accounting assumptions influence the way financial statements are prepared: the accounting entity assumption the accrual basis assumption the going concern assumption the period assumption. (See pp 44-45 of text) Question 3 The following transactions relate to \"A Lovely Surprise\