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One of the constraints of conceptual framework for financial reporting, "Informationis material if its omission or misstatement could influence theeconomic decisions of the users taken on the basis of the financial statements."
1. You are required to explain the statement in detail with examples.
2. In the context of the above statement, would you capitalize the following items in the accounts of a company? Discuss each item in detail.
a. A box file
b. A computer
c. A small plastic displayst and
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Which of the following should not be used as the allocation base in a company that appropriately uses a single plant wide rate?
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Topeka Stores accepts both its own and national credit cards. During the year the following selected summary transactions occurred.
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