QUESTION ONE 1.1 There are ten (10) accounts listed on the following table. Complete the table by identifying and recording the element to which each account will be allocated and state whether the account will be shown in the statement of financial position (SOFP), the statement of changes in equity (SOCE) or the statement of profit or loss and other comprehensive income (SOCI). You may use the abbreviated form of the relevant statement as shown in the example below: No Account element Component of financial statement. Example Bank Asset SOFP 1.1.1 Equipment ? ? 1.1.2 Electricity ? ? 1.1.3 Services rendered ? ? 1.1.4 Investment in shares ? ? 1.1.5 Dividends received ? ? 1.1.6 Trade receivable ? ? 1.1.7 Long term borrowings ? ? 1.1.8 Interest on borrowings ? ? 1.1.9 Drawings ? ? 1.1.10 Capital ? ? Required: Use the table above to formulate your solution. Consider each of the accounts listed on the table and allocate to an element and show in which of the components of the financial statements the account will be shown. 1.2 Provide the definition of a liability and briefly describe the three criteria for showing a liability in the financial statements. 1.3 Financial statements are prepared and presented under the assumption that the entity is going to continue into the foreseeable future. What is this assumption commonly known as and what is its significance? 1.4 Briefly describe the two fundamental qualitative characteristics as identified in the conceptual framework. Also list two qualities that enhance the two fundamental characteristics