Question 2 (25 marks)
part i
(a) describe "notes to the financial statements". identify what is the accounting concept that
support for preparing the notes.
(3 marks)
(b) refer to question 1 of always fit company and assume the company's financial statements
were issued on march 25, 2019. state “yes” or “no” whether situation (1) to (4) below
require disclosure with the financial statements. if“yes”, identify the nature of disclosure. if
“no”, give the reason to support.
(1) on february 28, 2019, there was serious water leakage problem in several studio
classrooms. it was expected to take three months for repair.
(2) the information about the lender, the interest rate and the repayment schedule of the notes
payable.
(3) a customer fell down in studio's toilet and his arm was seriously injured and the company
was sued by the customer for medical compensation of $100,000 in 2018. the hearing date
is fixed on april 25, 2019.
(4) on february 27, 2019, the company's accountant found $300 cash was stolen by a part-
time staff.
(12 marks)

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Alinguist had a gross income of 53,350 last year. if 17.9% of his income got witheld for federal income tax, how much of the linguist's pay got witheld for federal income tax last year?

Before the tools that have come from computational psychiatry are ready to be used in everyday practice by psychiatrics, what is needed