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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

Question 1
a) Cash-basis or accrual-basis 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 $1,000 goods on credit
ii) Receives cash $20,000 from sales
iii) Obtains $3,000 bank loan

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