Q#5 (5*2=10) a. Ms. Kamrun is the president of Better Books. She has no accounting background. Kamrun cannot understand why fair value is not used as the basis for all accounting measurement and reporting. Discuss. b. A company makes an accrued revenue adjusting entry for Tk.900 and an accrued expense adjusting entry for Tk.700. How much was net income understated prior to these entries? Explain. c. Why may a trial balance not contain up-to-date and complete financial information? d. Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result in a debit to Inventory by the buyer and a debit to Freight-Out by the seller. Explain the meaning of the credit terms 2/10, n/30. e. How does the single-step form of income statement differ from the multiple-step form? Stefan Page Company reports net sales of Tk.800,000, gross profit of Tk.370,000, and net income of Tk.240,000. What are its operating expenses? End of Question Paper