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Question 1 a ) Cash - basis or accrual - basis accounting are the most common basis for accounting. Discuss the key difference between the
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a Cashbasis or accrualbasis accounting are the most common basis for accounting. Discuss the key difference between the two approaches.
b For accounting statements to represent the various value of assets and liabilities, it is necessary for a measurement unit to established. Briefly discuss the following measurement principles
i Cost principle
ii Monetary unit assumption
iii Economic entity assumption
c What is the accounting equation?
Analyse the effects of the followings transactions on the accounting equation.
i Purchases $ goods on credit
ii Receives cash $ from sales
iii Obtains $ bank loan
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