3.A machine was purchased for $200,000 on 1/4/2017 and as on 31/3/2018 its net realizablo value was $250.000. Do you prefer to count this profit? Is this a violation? If this is a violation explain the accounting convention or concept which has been violated Response: - Convention of consevatism 4. According to verifiable objective concept, no anticipated or unrealized profits should be taken into consideration while preparing the profit and loss account and balance sheet. Comment whether the above statement is True of False. If it is false explain why. Response: - 5. According to the money measurement concept, the realizable value of an asset is to be ignored completely. Comment whether the above statement is True of False If it is false explain why. Response: - Cost concept Section 2 - (10x.5 = 5 Marks) [CLO 2] Page 3 of 6