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1 markFinancial Statements and Users of Accounting Information

CAPE Management of Business Unit 1 · 2006 · Paper 1 · Question 15(a)

Sonia purchased a stapler for $15 with an expected useful life of 10 years and debited the purchase to the equipment account, which her accountant noted violated an accounting concept.

Identify the accounting concept that was violated.

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  1. 15(b)Outline the correct accounting treatment Sonia should have followed and explain why.[3 marks]

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