QUESTION 8 a) Explain the fundamental qualitative characteristics of accounting information. (5 Marks) b) Explain the enhancing qualitative characteristics of accounting information. (5 Marks) c) Financial statements are the summary of the financial results of the operation of a business for a specified period of time and the financial position as at that date. What are the components of financial statements? (2.5 marks) d) Financial statements are prepared to meet the demands and aspirations of certain group of people Mention five (5) users of financial satements and state any two reasons why such user needs financial statements. (2.5 marks) e) DuPont is said to be the better way of analyzing Return On Equity (ROE). What are the components of DuPont Analysis? (3 marks) QUESTION 7 The following balances were extracted from the books of Sunkwah, a sole trader, as at 31st December, 2002. DR GHo CR GHo 500,000 Capital Purchases and Sales Inventory - 1/1/02 Land and Building (c1,000, 000) 00,000 Motor Vehicle (c800,000) Cash Rent and Rates General Expenses Provision for Bad & Receivables & Payables Drawings Commission Received Returns Outwards Bank Balance 250,000 850,000 50,000 640,000 200,000 120,000 150,000 Doubtful 40,000 490,000 380,000 50,000 80,000 100,000 600,000 2,550,000 2,550,000 The following additional information are also relevant