Question 7 3 pts Polar Ltd is taking legal action against its key supplier for non-delivery of the major supply claiming damages of 5min and it has been advised that it is probable that it will win the case in 2018. Y/end is 31 Dec 2018. Identify how it should be treated in financial statements? O Trade Receivable Neither trade receivable nor contingent asset disclosure Contingent asset disclosure in the notes Contingent liability disclosure in the notes Question 8 3 pts 1. The second step in the revenue recognition process is to identify the separate performance obligations in the contract. 2. A contract liability (i.e deferred revenue) is a company's obligation to transfer goods or services to a customer for which the company has already received consideration from the customer. State whether above statement are true or false. 1-false 2 - false O 1- true 2 - true 1- true 2 - false O 1-false 2 - true Question 9 3 pts The first step in the interpretation process should be: O A review of the auditors report O A general overview of the financial statements to be analysed The calculation of as many ratios as possible O Vertical Analysis of Financial Statements