You are required to research and answer the following two questions. Your answer to each question must be written on a separate sheet(s). The indicative word limit for each question is approximately 250-350 words.
1. Discuss the classification of current assets and current liabilities in the context of preparing the balance sheet and how the same asset or liability may be classified differently by different companies (provide an example to illustrate).
2. Define the cash flow statement and the value of the additional information that it provides to external stakeholders making investing decisions.