13 a) State how each of the following will affect various elements of cash flows (operating, financing, and investing). i. An increase in the level of inventories ii. A new issue of ordinary shares ili. A redemption of debenture iv. Depreciation of non-current asset v. Issue of bonus shares (10 Marks) b) Discuss historical concept and prudence, explaining how each contributes to the primary qualities of accounting information. (10 Marks) c) List and briefly describe the components of the published financial statements of a corporation. For each component, your description must highlight its function and highlight inter-relationships with other components of the published financial statements. (20 Marks) TOTAL 40 Marks 14 a) Describe the scope and objectives of general-purpose financial reporting as laid out in the conceptual framework for IFRS (International Financial Reporting Standards) approved by the IASB. Specify and briefly describe the fundamental and enhancing qualitative characteristics of useful financial information as per the framework. (20 marks) b) State the criteria for recognition of elements of financial statements. Based on these criteria, describe the basis for when assets, liabilities, incomes and expenses are recognized on the financial statements of a reporting entity. (20 marks) TOTAL 40 Marks 15 a) Briefly explain the following concepts in relation to the preparation of financial statements: i. Going Concern ii. Materiality ii. Accrual (9 marks) b) Describe, the concept of "true and fair" view in the context of corporate financial statements. How do reporting entities demonstrate that their reported financial statements are "true and fair"? (20 marks) c) Does comprehensive income help in producing a true and fair view' of a company's financial performance? Why or why not? (11 marks)