Question: 1. [Conceptual basis for accounting standards] Explain why accounting standards might be different if they were established by:

(i) Short-term lenders such as trunks

(ii) Lorig-term equity investors

(iii) Tax authorities

(iv) Corporate managers

2. [Baste accounting concepts] Describe the relationship between the matching principle and the accrual method of accounting in the preparation of financial statements.

3. [Basic accounting concepts] Describe why the going concern assumption is important in the preparation of financial statements.