4. (a) As a financial analyst, list the areas where choices and estimates might affect financial reporting.

(13)

2. Using a numerical example, explain how different inventory costing methods could affect the cost of goods sold and gross profit?

(13)

3. Outline the differences between conservative and aggressive accounting.

(12)

(d) Describe motivations that might cause management to issue financial reports that are not high quality.

(12)

(50)