When using the cycle approach to segmenting the$$ audit, the reason for treating capital acquisition and repayment separately from the acquisition of goods and services is that

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Part $1$

A$.$

the transactions are related to financing a company rather than to its operations.

B$.$

most capital acquisition and repayment cycle accounts involve few$$ transactions, but each is often highly material and therefore should be audited extensively.

C$.$

Both A and B are correct.

D$.$

Neither A nor B is correct.