Explain the accounting principle or concept

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In each of the following scenarios explain the accounting principle or concept that would apply in order to rectify the situation:

Question (a) The accountant of Transnational Ltd over values an item of asset in the statement of financial position by $4,000,000. 

Question (b) Over the last four accounting periods, Keith Davis, the Finance Manager of Global Industries Ltd has used different approaches to the calculation of depreciation provisions in the books. No plausible explanation has been given for the diversions.

Question (c) In preparing the final accounts and balance sheet of Lucas Brown Ltd, $100,000 due to Frank Laing a contract worker was owed to him at the end of the accounting period. No recording was made of this at the time of preparing the accounts.

Reference no: EM132575565

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