Assessment Task 1: Knowledge Test Provide your response to each question in the box below. Q1: Answer the following questions: 1.1. Explain the process to establish and review profits and losses from financial statements. Write your answer in 150-200 words. 1.2. Why it is important to review profits and losses from financial statements? Answer in 150- 200 words 1.3. Explain the following processes/methods of analysing financial statements in 150-200 words. a) Vertical Analysis b) Horizontal Analysis c) Ratio Analysis d) Trend Analysis Q2: Answer the following questions regarding principles of accounting and budgeting: 2.1. What is financial probity? Why is it required in organisations? Write your answer in 150-200 words. 2.2. What are the requirements for financial probity? Answer in 100 - 150 words