(1) Indicate the reporting value of the following financial statement items according to current practice under the HC accounting model: Cash equivalent, Acct receivables, Inventory, trading securities, Available for sale securities, Held to maturity securities, prepaid expenses. Short term NPP. (II) By making reference to the financial Accounting Conceptual frame work answer the following questions: 1- Evaluate the two method the have been used to account for uncollectable (Direct write off method& and allowances method) 2- Evaluate the two approach to estimate future bad debt expenses (percentage of sales percentage of receivable). 3- Evaluate the LCM rule as it applies to inventory. (III) Provide 5 examples from real world setting on violation of HC principle; that is asset or liabilities reported on basis other than HC and the justification for these violations. (IV) Indicate whether each of the following statements is false or correct, and explain briefly why if it is not correct: 1- long term receivable should be recognized initially on transaction date at face value or gross value. 2- Both short term and long term NP should be recognized initially on transaction date at PV of future related cash flows. 3- Both short term and long term receivable should reported at NRV. 4- Both short term and long term NP should be recognized initially on transaction date at PV of future related cash flows. 5- Both short term and long term receivable should reported at settlement value. (V) (A) During a period of rising prices answer the following question that related to two cost flow assumptions: 1- Which method maximize Net Income ? 2- Which method minimize Net Income ? 3- Which method maximize total assets in the B/S ? 4- Which method minimize income tax ? 5- Which method maximize OE? (B) Regardless of the price movement in the economy: 1- which method provide more realistic value for reported inventory? and why? 2- which method provide better measurement of NI ? and why? 3- Which method is more consistent with the matching principle? and why ? 4 which method indicate more conservative accounting policy? And why? what are the consequences on financial statements if company used the sale price if inventory as measure of MV when applying the LCM rule to inventory? (consider both quantitative and qualitative factors) (1) Indicate the reporting value of the following financial statement items according to current practice under the HC accounting model: Cash equivalent, Acct receivables, Inventory, trading securities, Available for sale securities, Held to maturity securities, prepaid expenses. Short term NPP. (II) By making reference to the financial Accounting Conceptual frame work answer the following questions: 1- Evaluate the two method the have been used to account for uncollectable (Direct write off method& and allowances method) 2- Evaluate the two approach to estimate future bad debt expenses (percentage of sales percentage of receivable). 3- Evaluate the LCM rule as it applies to inventory. (III) Provide 5 examples from real world setting on violation of HC principle; that is asset or liabilities reported on basis other than HC and the justification for these violations. (IV) Indicate whether each of the following statements is false or correct, and explain briefly why if it is not correct: 1- long term receivable should be recognized initially on transaction date at face value or gross value. 2- Both short term and long term NP should be recognized initially on transaction date at PV of future related cash flows. 3- Both short term and long term receivable should reported at NRV. 4- Both short term and long term NP should be recognized initially on transaction date at PV of future related cash flows. 5- Both short term and long term receivable should reported at settlement value. (V) (A) During a period of rising prices answer the following question that related to two cost flow assumptions: 1- Which method maximize Net Income ? 2- Which method minimize Net Income ? 3- Which method maximize total assets in the B/S ? 4- Which method minimize income tax ? 5- Which method maximize OE? (B) Regardless of the price movement in the economy: 1- which method provide more realistic value for reported inventory? and why? 2- which method provide better measurement of NI ? and why? 3- Which method is more consistent with the matching principle? and why ? 4 which method indicate more conservative accounting policy? And why? what are the consequences on financial statements if company used the sale price if inventory as measure of MV when applying the LCM rule to inventory? (consider both quantitative and qualitative factors)