1. Mr. Ahmed has opened Restaurant in Al Qurum with a Capital of 1 Million and has appointed Mr.Marwan as an Accountant to look after all the financial transactions of the Restaurant. Mr. Marwan follows series of steps for the various transactions. You are required to identify and list in the detail the steps followed by Mr. Marwan in the Accounting books.

2. There are three main form of Business organization, if you decide to join business field which form of business will you prefer to join and briefly explain why you didnt choose the other form of Business organization?

3. Ali Company borrowed OMR50, 000 in December 2019 for a period of three months from Azzan and will make its interest payment three months later. The total interest for the three months will be OMR 1500. At the end of the year 2019 in the financial statement, the company reported Interest Expense of OMR 500 in Income Statement.

a. This action was the result of which accounting principle? Explain. (1 mark)

b. Do you think, the borrowed money will increase the assets/ Liabilities of the business? Yes/ No Justify your answer.

4. Mr. Zuhair Started Car cleaning services in Ruwi with a capital of OMR 50,000 and earns a profit of OMR 2,500 at the end of the year. He spends OMR 250 to purchase clothes, OMR 350 to purchase mobile phone for his personal use can Mr. Zuhair records his personal expenses in his Car cleaning service accounting books? Explain the reason by justifying the result which relates to GAAP.