Case Scenario Mr. Tom, the owner of a small business selling and repairing cars which you patronize, has just received a copy of his financial statements for the current year. He is rather baffled by some of the following items and has asked you to explain certain points of difficulty to him. This you have readily agreed to do. His questions are as follows: (a) "Why is the "bank and cash" figure in the statement of financial position different from net profit for the year shown in the income statement?" (3 marks) (b) 'My 20-year mechanical experience and skill is an asset to the business but it does not seem to have been included in the financial statement." (3 marks) (c) "The value of the shop lot reported in the statement of financial position should be adjusted to market value since it is more realistic to reflect its actual condition." (3 marks) (d) The house I live in cost RM130,000 five years ago and is now worth RM360,000, but that is not included in the financial statements either." (3 marks) (e) 'I am the owner of the business and should definitely have the right to include my personal laptop and all of my personal cars in the financial statement." (2 marks) (f) Why do amounts for "vehicles" appear under both non-current asset and current asset headings?" (3 marks) (g) 'I sent my son who studied at the college to attend a car-repair training session on behalf of me. After training, he has conducted a briefing session to me and my workers. Why the fees paid by the business was classified as owner's drawing?" (3 marks) Required: Answer each of his questions with any relevant accounting concept/terminology in the terms that he can understand (Total 20 marks)