1. Assume any company which is opting LIFO (Last in First out) inventory method for the record of its stock valuation. Support your answer with the help of supposed accounting values and explain the associated physical inventory verification method for that company. (5 Marks)

2. If a company manager is making an investment decision regarding the purchase of any fixed asset from the PP&E category. How does he record the cost associated with this investment and which accounting treatment is to be done to make the provisions in financial statements? (5 Marks)