SECTION A - ACCOUNTING THEORY This Section carries 50% of the marks available for this examination paper. It contains TWO (2) questions, each with sub-parts. Answer both questions in this Section. Question 1 THIS QUESTION IS COMPULSORY 1a) 'Every business is interested in generating its 'real' prot and having a balance sheet (statement of nancial position) which shows the 'true' value of assets and liabilities, but the application of accounting policies can prevent the 'real' prot being measured and the 'true' value of assets and liabilities being measured.' Required Comment on this statement, and in so doing give ve (5) examples to enrich your commentary. [15 marks] 1b) 'Financial ratios can be useful when comparing the nancial performance and nancial health of two or more businesses, but that usefulness can be impacted negatively by certain factors.' Required Comment on this statement. Illustrate your commentary appropriately. [10 marks] [Total 25 marks]