Answer Two out of Three Questions Question 1. Required (a) The Conceptual Framework for Financial Reporting 2010 states that information contained in the statements should have certain specified, qualitative characteristics. Briefly outline the two fundamental and the four enhancing qualitative characteristics. (10 marks) (b) (6) Explain the measurement basis of any three of the following: Cash Equivalents Trade receivables Inventory Property, plant, and equipment Intangible assets Goodwill (10 marks) Analysis of a company's balance sheet can provide insight into the company's liquidity and solvency. Explain how you would use common-size analysis and balance sheet ratios to determine a company's liquidity and its solvency. (10 marks) (c) Based on the readings you have completed critically evaluate the following statement: 'Evaluating a company's past performance may provide a basis for forward looking analyses. Note: you may base you discussion around either (i) stock analysis or (ii) investment research. Marks will be awarded for well-argued referenced work. (20 marks) (Total marks: 50 marks)