1 - Grab & Run, Inc., a fast food company, purchased assets on finance lease for Kshs.7,000,000 and paid Kshs.100,000 down payment and the rest on a15-year period remainder. The company accountant insists not to recognize such assets in the books since it's a lease.

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

• What is the name of the conceptviolated ( in each question ) with reasons and suggest the effect it will have on financial statements in regard to qualities of good accounting information.