1. Explain five qualitative characteristics of IFRS that is used to prepare financial statement to your colleague at a meeting.
2. Explain difference between profit and profitability.
3. Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.
4. Explain the difference between capital expenditure and revenue expenditure and how each type of expenditure will affect the financial statements of a business.
5. Explain why it is important to distinguish between capital expenditure and revenue expenditure and briefly explain the accounting treatment of each type of expenditure.
6. Under what circumstances will you consider the reducing balance method as the most appropriate method in calculating depreciation.
7. Does depreciation decrease cash in a business? Explain your answer.