SECTION B You are required to read each statement carefully and present your agreement or disagreement with the statement. You must support your answer with logical answers. Your answer should not exceed three statements for each statement. ATTEMPT ANY FOUR (04) 1. Revenues, gains, and investments by owners are all increases in net assets. What are the distinctions among them? 2. What is the normal procedure for handling the collection of accounts receivable previously written off using the direct write-off method? The allowance method? 3. Explain the rationale for the ceiling and floor in the lower of cost or market method of valuing inventories. 4. Under what circumstances is relative sales value an appropriate basis for determining the price assigned to inventory? 5. Explain the two step process for identifying and determining the impairment of tangible assets? Further explain is there any difference in the treatment of impairment held for assets held for sales and assets used in business operations? 6. List (a) the similarities and (b) the differences in the accounting treatments of depreciation and cost depletion