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Tutorial 1, Week 2 (Homework)[1]

Which concept or principle governs this decision

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Unformatted text preview: e business? Which concept or principle governs this decision? Hunter is violating the going-concern concept. Hunter should account for assets at their actual cost, as determined by the cost principle. E1-1 Deciding on an investment (Obj. 1) Suppose you have saved some money and you are considering an investment in Qantas. What accounting information will you use to decide whether or not to invest in Qantas? Explain your answer. To decide on an investment, you should use Qantas’ financial statements. You will use Qantas’ profit (or loss) information. And you hope Qantas’ accountants follow the reliability principle because you must rely on the company’s data to make your investment decision. Student responses may vary....
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