Q # 2

Please answer the following question independently:

a.Discuss "capitalization of interest" in accounting. Please provide your opinion in regard with this issue.

b.Differentiate between the concepts "cost allocation" and "cost revaluation".Discuss and give examples.

c.What are the main differences between revenue expenditures and capital expenditures?

Provide examples and indicate how these items are reported in the financial statements.

d.d.Discuss the effect of using different accounting methods (such as depreciation methods) on the financial reporting.

e.Explain the types of financial instruments (investments in securities). Discuss how each item is reported in the financial statements.

f.Discuss the following statement

''The accrual basis of accounting creates the need for a statement of cash flows''.

g.Explain and discuss the relationship between working capital and providing liquidity to the entity.