(i) Abel Rufus Company owns equipment that is worth substantially more than they originally cost. In an effort to provide more relevant information, Abel Rufus reports the equipment at market value in its accounting reports.

(ii) Nairobi Holdings Company includes in its accounting records only transaction data that can be expressed in terms of money.

(iii) Wambui the managing directors of Wambui Club, records his personal living costs as expenses of the Cantina.

Required;

For each of the three situations, say if the accounting method used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated.

Give your answer by completing the table below:

Situation	Is accounting method correct?	Principle or assumption that supports method	Principle or assumption violated
(i)
(ii)
(iii)