QUESTION 6 a) Carefully comment on the following augments made by the Finance Manager of Combo Company Limited, a listed company with a total net worth of GH 25,000,000.00. Your position should be supported by the relevant accounting standard, principle, convention, concept and postulate. i. The depreciation of motor vehicle is charged on straight line basis but after some years of the asset usage, I notice that the efficiency of the asset is reduced, but the same amount of depreciation amount is charged and that reduces profit level. So let us change from straight line to reducing balance method which to him is fair (2 marks) ii. The company bought two needles at the cost of GH1.00 each. The Finance Manager said this is an acquisition of non current asset (equipment, which should be recorded in the asset register and depreciated in line with equipment depreciation policy" (2 marks) iii. "Our customers have proved to be trustworthy for the years the company has dealt with them, so to me, making provision for doubtful debt will create an impression that we no longer trust our customers (2 marks) iv. "We don't need to recognize the unpaid salaries of our staff in this year's financial statements because it will reduce profitability, after all we will not pay for it this year" v. Look at the cost of preparing financial statements and auditing cost too, why not stop these things after all the company is not going to be liquidated now that we need to account for its transactions (2 marks)