Reference no: EM132539734

Question 1: What is the concept violated with reasons and suggest the effect it will have on financial statements in regard to qualities of good accounting information if :

1- 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.

2- The 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.

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

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