Parkville Pizza & Pasta is a small family business that is great at making pizza and cooking great pasta but has little experience in accounting processes and practice.
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Most accounting information is kept on scraps of paper and in an exercise book and no bank statements are stored. When cash is received or paid, Parkville Pizza & Pasta does not record in any source documents.
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As their new accountant, you would suggest to the entity that they are breaching the conceptual framework of
Online
O Verifability
O Relevance
O Timeliness
O Faithful Representation
OComparability
As the new accountant for Parkville Pizza & Pasta, you would suggest that the entity is breaching the conceptual framework of:
O Faithful Representation
This is because the lack of proper record-keeping, such as not using source documents, not recording cash transactions, and not storing
