6 marks Problem 5 Short answer questions. Answer the questions asked clearly and concisely in two to three sentences. Hint: Do not be vague. A. Why doesn't the IASB develop accounting standards for the entire world? B. Nancy Fancy is a company that produces clothing. Nancy, the owner of the company, hired an accountant to prepare her company's financial statements. What section from the CPA Canada Handbook should Nancy Fancy follow and why? C. Why are auditors important to the financial reporting environment and other stakeholders? 5 marks Problem 6 On June 1, 2020, CEDAR Tooling Ltd. assessed two available options for the purchase of new equipment with a negotiated cash price of $55,000. The manufacturer is willing to accept down payment of $10,000 and an instalment note for the balance. The note would require three fixed principal payments (plus interest) starting June 1, 2020, for a period of three years. CEDAR also has a proposal from its bank for an instalment loan for three years that requires a fixed blended annual payment (including both principal and interest) starting June 1, 2020. The loan would be for $45,000 of the equipment's purchase price. The current market rate of interest is 8%. Both contracts have an interest rate of 8%. Instructions: Calculate the amount of the SECOND payment required of CEDAR under each alternative. Show your calculations. 6 marks Problem 5 Short answer questions. Answer the questions asked clearly and concisely in two to three sentences. Hint: Do not be vague. A. Why doesn't the IASB develop accounting standards for the entire world? B. Nancy Fancy is a company that produces clothing. Nancy, the owner of the company, hired an accountant to prepare her company's financial statements. What section from the CPA Canada Handbook should Nancy Fancy follow and why? C. Why are auditors important to the financial reporting environment and other stakeholders? 5 marks Problem 6 On June 1, 2020, CEDAR Tooling Ltd. assessed two available options for the purchase of new equipment with a negotiated cash price of $55,000. The manufacturer is willing to accept down payment of $10,000 and an instalment note for the balance. The note would require three fixed principal payments (plus interest) starting June 1, 2020, for a period of three years. CEDAR also has a proposal from its bank for an instalment loan for three years that requires a fixed blended annual payment (including both principal and interest) starting June 1, 2020. The loan would be for $45,000 of the equipment's purchase price. The current market rate of interest is 8%. Both contracts have an interest rate of 8%. Instructions: Calculate the amount of the SECOND payment required of CEDAR under each alternative. Show your calculations