Question #4: (10 points) A.The scientific method of inquiry, as the name suggests, was developed for the natural and physical sciences and not specifically for social sciences such as accounting. There are some clear limitations on the application of this research methodology to accounting. What are the main limitations? (4 points) 8- The CAPM model presents how users react to accounting information and illustrates how risk is incorporated Into the decision models 1- Explain the relationship of beta to stock prices? (1 point) 2. Present the CAPM model? What each of its components denotes? (2 points) 3. What is the basic assumption for the CAPM? (1 point) 4 What are the main critics to CAPM, so as it is not relevant for accounting theory development? 12 point) Question # 2: (10 points) Murad Co. Ltd. bank statement for May 2017 shows the following data. Balance 1/5 $126,500 Balance 31/5 $142,800 Debit memorandum: NSF check $1,750 Credit memorandum: Collection of note receivable $5,050 The cash balance per books at May 31 is $133,190. Your review of the data reveals the following. 1. The NSF check was from Saeed Co., a customer. 2. The note collected by the bank was a $5,000, 3-month, 12% note. The bank charged a $100 collection fee. No interest has been accrued. 3. Outstanding checks at May 31 total $24,100. 4. Deposits in transit at May 31 total $17,520. 5. A Murad Co Ltd. check for $3,520, dated May 10, cleared the bank on May 25. The company recorded this check, which was a payment on account, for $3,250. Required: (a) Prepare a bank reconciliation at May 31. (6) Journalize the entries required by the reconciliation