1. Relevance and reliability represent two key qualitative characteristics of accounting information. What do these two terms mean in an accounting context? Are they in conflict?

2. Name an alternative to historic cost for measuring asset values and explain why the alternative method would be used.

3. Consider the characteristics of a well-established company that is operating successfully in its market. Explain whether the expected net cash flows from the three activities (operating, investing, financing) would be inflows or outflows.