The Wrong Assumption - Applying the Generally Accepted Accounting Principles (GAAP) Instructions: Read each of the following situations that make the incorrect assumption based on GAAP. Identify the GAAP principle that makes the statement incorrect and explain how to correctly apply the GAAP principle to the situation. 1. Keyonda is the owner of a small hair salon. To help with her taxes she decides to list her personal car as property of the business. 2. In a conversation with his accountant Travis states that he is concerned that he will not be able to survive over the next year and instructs the accountant to assume that the business will close unless there is a major tum around. 3. Amanda's business has received a special deal that allows them to pay for a computer next year that the business will get immediately. She excitedly shares the news with her accountant by saying "this will really make our profits look good this year