W AutoSave Off Accounts Search (Alt+Q) Mailings Review View Help Acrobat File Home Insert Draw Design Layout References Calibri (Body) 11 A A Aa A A C Paste BIU ab X x A Undo Clipboard Font AT Paragraph N Adrian Quek AQ Comments Share Normal No Spacing Heading 1 Editing Dictate Editor Styles Question 3 (Total: 16 marks) Karim, who is considering going into business, has raised the following questions to his friend Eric, an accountant. . Since problems of 'cash flow' seem to be the major reason for the failure of business, attention to net profit or loss is surely a dangerous distraction. ii. iii. iv. Why it is necessary to distinguish between non-current and current assets; it seems arbitrary anyway since furniture may be regarded as non-current assets by one business and as current assets by another? What is the point of providing for depreciation when it does not seem to provide cash for replacement of non-current assets? It would seem reasonable to assume that every business regarded as a going concern would have goodwill on its balance sheet; however this is not the case. Required a) A concise reasoned reply, in the name of Eric, to answer each of the questions raised by Karim. Voice Editor