(b) Lotus Berhad began its operations on 1 January 2020 with RM500,000 of cash invested into the business. During the year, the company earned profit, RM100,000 and invested additional cash into the business amounting to RM40,000. In your opinion, does Lotus Berhad comply with the capital maintenance concept as at 31 December 2020? Why? (4 marks)

(c) Every year, Sunflower Berhad, a wholesale florist, prepares its annual report, which among others, provides information about the company's financial statements, notes to financial statements, directors' shareholdings, and auditor's report, to various stakeholders. Discuss if Sunflower Berhad's practice is in line with the objective of general-purpose financial reporting. (4 marks)

(d) On 1 May 2020, Ocean Berhad received RM144,000 rent in advance from its tenant who will rent Ocean Berhad's office building for the period from 1 May 2020 until 30 April 2021. Ocean Berhad's accountant recorded the rent received in advance of RM144,000 as revenue in the company's statement of financial performance (income statement) at its reporting date. Ocean Berhad's financial period is from 1 January to 31 December every year. Based on the IASB Conceptual Framework's recognition criteria, discuss whether the accountant had correctly recorded the rent received in advance in the books of Ocean Berhad as at 31 December 2020. (5 marks)

(e) Crabby Crab Berhad commenced its operations in the seafood industry on 1 April 2017 and conducts business the traditional way at its premises. Since its inception, the company earned reasonable profits due to the demand for fresh seafood. However, due to the outbreak of the COVID-19 pandemic at the end of 2019, the company began to incur losses as people shifted to online platforms to purchase fresh seafood that is delivered to the doorstep. On 31 March 2021, Crabby Crab Berhad liquidated its assets and filed for bankruptcy as it was unable to sustain its business. In this scenario, does Crabby Crab Berhad comply with the going concern assumption? Why? (3 marks)