A. Using examples, outline the definition of a liability as provided in the Conceptual Framework.

B. In accordance with the Conceptual Framework for financial reporting, explain briefly the reporting entity concept used in Accounting .

C. Explain what is meant by the lower of cost and net realisable value with reference to the recording and subsequent revaluation of Inventories.

D.Briefly explain the accrual basis assumption and why financial statements are prepared under this basis