need help with the answers of the questions... if possible please explain.. thanks

BKAR1013 FINANCIAL ACCOUNTING AND REPORTING I (A171) MINI CASE 1 CONCEPTUAL FRAMEWORK DUE DATE: 27.9.2017 QUESTION 1 Choose the best answer for the following questions: A. Which of the following statements about the Conceptual Framework is incorrect? a) The Conceptual Framework considers timeliness and materiality to be b) constraints on relevant and faithfully represented information. The Conceptual Framework states that the elements directly related to the c) measurement of financial position are assets, liabilities and equity. The Conceptual Framework applies to the financial statements of all d) commercial, industrial and business reporting entities. In accordance with the Conceptual Framework, income is recognized when an increase in future economic benefits related to an increase in an asset or a decrease in a liability has arisen that can be measured reliably. B. The Conceptual Framework enhancing qualitative characteristics include: a) Understandability, timeliness, verifiability and comparability. b) Faithful representation, relevance, understandability and verifiability. c) Comparability and reliability. d) Substance over form and relevance. C. Which of the following statements about the Conceptual Framework's definition of expense is correct? a) Expenses include distribution to owners b) Expenses are always in the form of outflows or depletions of assets. c) Expenses exclude losses. d) Expenses are always decreases in economic benefits. D. In accordance with the Conceptual Framework, a lender should recognize the forgiveness of its RM20,000 interest free-loan as: a) An increase in income and a decrease in a liability. b) An increase in an expense and a decrease in an asset. c) An increase in an asset and an increase in income. d) An increase in an expense and a decrease in a liability. QUESTION 2 a. Jusa Bhd purchases a rental property for RM10,000,000 as an investment. The building is fully rented and is in a prosperous area. At the end of the current year, the entity hires an appraiser who reports that the fair value of the building is RM15,000,000 plus or minus 10%. Depreciating the building over 50 years would reduce the carrying amount to RM9,800,000. (i) What are the relevance and faithful representation considerations in deciding how to measure the building in the entity's financial statements? b. Explain how you would account for the following items, justifying your answer by reference to the definitions and recognition criteria in the Conceptual Framework. Also state, where appropriate, which ledger accounts should be debited and credited. (i) a. Your firm has been sued for negligence - likely you will lose the case. b. Your firm has been sued for negligence - likely you will win the case. (ii) Obsolete plant now retired from use. (ii) Receipt of donation of RM10,000. QUESTION 3 a. Hassani Bhd operates a catering service specializing in business luncheons for large corporations. Hassani Bhd requires customers to place their orders 2 weeks in advance of the scheduled events. Hassani bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date. Conceptually, when should Hassani Bhd recognised revenue related to its catering service? b. Master Bhd paid RM135,000 for a machine. The accumulated depreciation account has a balance of RM46,500 at the present time. The company could sell the machine today for RM150,000. The company's CEO believes that the company has the right to recognise this gain. What does the CEO mean by this statement? What is your view on this matter? c. The financial director in the company for which you are an accountant has told you that he has little use for accounting figures based on historical cost. He believes that fair values are of far more significance to the board of directors than \"out of dates\". Give some arguments to convince him that accounting data should still be based on historical costs. QUESTION 4 A. Write an accounting equation. B. What is the main rule relating to the total for this equation? C. Show how the following transactions effect the equation (i) Invest RM20,000 in cash (ii) Pay rental RM500 in cash (iii) Receive RM1500 cash for completing a job (iv) Receive RM800 cash for a job that is yet to be carry out (v) Purchase inventory of RM600 on credit D.. Journalise all the above transactions in (C). QUESTION 5 A partial adjusted trial balance of Satin Bhd at January 31, 2015, shows the following: Answer the following question: (a) If the amount in Supplies Expense is the January 31 adjusting entries and RM850 of supplies was purchased in January, what was the balance in Supplies on January 1? (b) If the amount in Insurance Expense is the January 31 adjusting entry and the original insurance premium was for one year, what was the total premium and when was the policy purchased? (c) If RM2700 of salaries and wages were paid in January, what was the balance in Salaries and Wages Payable at December 31, 2014? (d) If RM1,600 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2014