Q1) Provide a precise and brief answer to the following questions:

a) Explain how noisy financial statements exacerbate adverse selection?

b) Explain how one can judge whether earnings are of high or low quality?

c)What are the implications of preparing financial statements based on an unadjusted trial balance?

d) Why and when financial reporting leads to poor capital allocation?

e) Explain the difference between making money and making a profit? How does the accounting profession help in making this difference accessible to various stakeholders?