1 Given below are independent situations: 7. The accountant determines that the company is in danger of going bankrupt and therefore refuses to certify the statements as prepared according to generally accepted accounting principles. 8. Mr. Sandy invests money in his business. In the books of the business, he books capital as the asset of the company and cash invested also on the asset side of the balance sheet. 9. The accountant prepares accounts of the company for different period based on profitability to be shown - sometimes 12 months, sometimes 9 months. 10. The company purchased new machinery for which it made a cash payment of Rs. 5 lakhs. An entry was made showing reduction in the cash, but the accountant failed to account for increase in the value of the fixed assets