Please Answer in Detail Question 01: Qualitative characteristics of accounting information relates to the second level of...

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Accounting

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Question 01: Qualitative characteristics ofaccounting information relates to the second level of conceptualframework. Discuss in detail, the primary qualitativecharacteristics relating to the content and presentation ofinformation with particular emphasis to their importance.
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Question 02: Financial statements preparedunder historical cost convention do not have regard for changes inprice levels and therefore do not reflect financial realities.Discuss six limitations that statements prepared by historical costaccounting possess that reduce their utility to the users.

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Financial Statement prepared under historical cost convention do not have regard for changes in price level therefore have the following limitations 1 Depreciation under historical cost convention is charged on the original value of the asset The mechanism is created to replace the fixed assets when it becomes economically or technically obsolete The future cost of an asset mostly if not See Answer

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