The following events/transactions took place in various companies in the year ending 31st

December 2019. The treatment in the books of account is as indicated. State the concept violated

with reasons and suggest the effect it will have on financial statements in regard to qualities of

good accounting information.

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. The non-current assets of Daystar ltd purchased three years ago for sh. 22,000,000 have been entered in the books at sh.30,000,000 based on the current market value
3. The accountant reflected in the books that debtors owe the firm Kshs.2,150,000. This happened despite knowing that one of the debtors had been declared bankrupt two years ago. The debtor owed the business Kshs.300,000.
4. The accountant had deliberately not disclosed that the business had lost Kshs.500,000 following a robbery that took place during that year and that the money was not insured.
5. Kelvin ltd has decided to depreciate its property on cost, plant on reducing balance method and equipments on cost.