Reference no: EM132539720

Question 1: What are the concept violated with reasons and the effect on financial statements in regard to qualities of good accounting information if :

1- an accountant reflected in the books that debtors owe a firm $ 2,150,000 ; Despite knowing that one of the debtors had been declared bankrupt two years ago and owed the business $ 300,000.

2- A firm has decided to depreciate its property on cost, plant on reducing balance method and equipments on cost.

3-A non-current assets of a company purchased three years ago for $ 22,000,000 have been entered in the books at $ 30,000,000 based on the current market value.

4- A company, purchased assets on finance lease for $7,000,000 and paid $.100,000 down payment and the rest on a15-year period remainder and the company accountant insists not to recognize such assets in the books since it's a lease.