a) i) Relevance: Accounting information is relevant if it influences users’ economic decisions by helping predict future outcomes or confirm past evaluations. For example, in lending, banks like GCB Bank use relevant revenue forecasts to assess loan repayment capacity under BoG guidelines.

ii) Understandability: Information should be presented clearly and concisely so that users with reasonable knowledge can comprehend it. Complex financial statements should include notes; in Ghana, this aligns with IAS 1 for transparent reporting.

iii) Materiality: Information is material if its omission or misstatement could influence decisions. Thresholds vary, e.g., a GHȼ1,000 error might be immaterial for a large bank but significant for a small trader.

iv) Completeness: Information must include all necessary data without omissions to be reliable, including disclosures of risks. In post-DDEP Ghana, complete disclosure of debt restructuring impacts is vital for investor trust.

v) Neutrality: Information should be free from bias, not favoring any outcome. Auditors ensure neutrality to comply with ethical standards, avoiding manipulation seen in past bank collapses like UT Bank.

b) Three ways to address negative net monthly cash balances in a cash budget:

1. Delay non-essential payments or negotiate extended credit terms with suppliers to improve short-term cash flow, ensuring working capital matches liquidity needs.
2. Accelerate collections from receivables by offering discounts for early payments or using factoring services, common in Ghanaian trade finance.
3. Secure short-term financing like overdrafts or loans from banks, subject to BoG’s liquidity risk management guidelines, to bridge the gap without disrupting operations.