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This assignment focuses on accounting assumptions, concepts, principles, modifying conventions, objectives, qualitative characteristics, accounting policies, and the income statements for service and merchandising organizations. It requires knowledge in the following: The effects of accounting assumptions on the accounting process. The effects of accounting concepts on the accounting process. How GAAP affect financial reporting. The impact of modifying conventions on the accounting process. How accounting objectives, qualitative characteristics, and policies affect financial reporting. The differences and similarities between income statements for service and merchandising organizations. The methods used to determine the amount of merchandise inventory on hand. How to use the gross margin percentage as a tool for financial analysis. Preparation Complete the Assessment 4 Template [DOCX] Download Assessment 4 Template [DOCX]. Review all required readings. Note: Accuracy in accounting is paramount so take your time and double-check your work for errors or omissions. Instructions Answer questions correctly. When you are satisfied with your responses, save and submit your template in the classroom. Step 1: Discuss the effects of the five major accounting assumptions on the accounting process. Step 2: Describe the five concepts’ impact on the accounting process. Step 3: Describe the five major accounting principles. Step 4: Describe the impact on the accounting process of the three modifying conventions. Step 5: Identify the accounting procedures of Principles, Assumptions, and Concepts. Step 6: Complete the equations of merchandising accounting. Step 7: Describe the two methods used to determine merchandise inventory. Your submission will also be graded on the clarity and quality of your write. So, make sure you are writing in complete and grammatically correct sentences. Competencies Measured By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria: Competency 1: Define accounting terminology and its application to accounting principles. Describe the five major accounting principles. Identify the accounting procedures of Principles, Assumptions, Concepts. Competency 2: Apply accounting cycle strategies to manage business financial events. Outline the effects of the five major accounting assumptions on the accounting process. Describe the five concepts’ impact on the accounting process. Describe the impact on the accounting process of the three modifying conventions. Complete the equations of merchandising accounting. Describe the two methods used to determine merchandise inventory. Competency 4: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards. Convey clear meaning through appropriate word choice and usage. Write in the third person, adhering to conventions of academic tone.