3. What accounting principle is being violated in the following: a. The owner mixed up his personal expenses with the operating expenses of the corporation. b. The owner did not report the portion of receivables pledged to obtain bank loans. c. The owner believes it is foolish to report financial information on a yearly basis. Instead, the owner believes that financial information should be disclosed only when significant new information is available related to the company's operations. d. Because the enterprise's income is low this year, the owner decided to ignore depreciation incurred this year. e. Inventories costing P100,000 is reported at its current market value of P140,000.

3. What accounting principle is being violated in the following: a. The owner mixed up his personal expenses with the operating expenses of the corporation. b. The owner did not report the portion of receivables pledged to obtain bank loans. c. The owner believes it is foolish to report financial information on a yearly basis. Instead, the owner believes that financial information should be disclosed only when significant new information is available related to the company's operations. d. Because the enterprise's income is low this year, the owner decided to ignore depreciation incurred this year. e. Inventories costing P100,000 is reported at its current market value of P140,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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