Question No 3: (5+5=10 Marks) (Objectives of this case study) To understand the application of accounting principles in recording of financial transactions To analyze the treatment of adjustment entries in the preparation of final accounts Casel. The image given below shows one of the basic principles of accounting Identify the concept related and answer the following questions in your own words Objectivity Principle Accounting information is supported by independent, unbiased evidence. Answer the following Questions (I mark each) a. When a voucher is called as objective? b. Discuss any three examples to explain the accounting concept. c. How the concept is important for users of accounting? d. List any three importance of the concept objectivity c. How the concept of objectivity affects the concept of materiality? Case 2. Suppose you are the accountant of Salalah Transport, the Company has consulting project with a large client Shell production, the client owes OMR 120,000 to Salalah Transport for the year 2019. Since the agreement only allows for billing at the end of the project. The payment will be received in 2020. How do you show the figures in financial statements of 2019? Answer the following Questions (1 mark each) a. Name the adjusting entry related to this transaction and pass entry to record the transaction b. How will you define this adjusting entry in a single sentence? c. Which accounting concept is most applicable to this adjusting entry? d. How this amount is to be shown in balance sheet/ Income statement? e. How it will affect the financial statements if this entry is not passed? 5 Page Question No 3: (5+5=10 Marks) (Objectives of this case study) To understand the application of accounting principles in recording of financial transactions To analyze the treatment of adjustment entries in the preparation of final accounts Casel. The image given below shows one of the basic principles of accounting Identify the concept related and answer the following questions in your own words Objectivity Principle Accounting information is supported by independent, unbiased evidence. Answer the following Questions (I mark each) a. When a voucher is called as objective? b. Discuss any three examples to explain the accounting concept. c. How the concept is important for users of accounting? d. List any three importance of the concept objectivity c. How the concept of objectivity affects the concept of materiality? Case 2. Suppose you are the accountant of Salalah Transport, the Company has consulting project with a large client Shell production, the client owes OMR 120,000 to Salalah Transport for the year 2019. Since the agreement only allows for billing at the end of the project. The payment will be received in 2020. How do you show the figures in financial statements of 2019? Answer the following Questions (1 mark each) a. Name the adjusting entry related to this transaction and pass entry to record the transaction b. How will you define this adjusting entry in a single sentence? c. Which accounting concept is most applicable to this adjusting entry? d. How this amount is to be shown in balance sheet/ Income statement? e. How it will affect the financial statements if this entry is not passed? 5 Page