Question 2 (15 marks)

a) Discuss the importance of the going concern and accrual assumption to the practice of accounting (5 Marks)

b) The accounting standards frequently use the term 'impairment'. Explain the difference between impairment and depreciation. Provide an example of each to demonstrate your understanding. (5 Marks)

c) Explain the difference between expenses paid in advance and accrued expenses. Provide an example of each to demonstrate your understanding. (5 Marks)