5,6) (Assumptions, Principles, and Constraint) Presented below are a number of operational guidelines and prac- ave developed over time. ns assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use characteristics.) woll ir value changes are not recognized in the accounting records. oboo dodnemqinpo olse or to sanod 0) nancial information is presented so that investors will not be misled. tangible assets are amortized over periods benefited. how.vlane gricultural companies use fair value for purposes of valuing crops. obs ch enterprise is kept as a unit distinct from its owner or owners. pdmburcur 1 significant post-balance-sheet events are disclosed. evenue is recorded when the product is delivered. l important aspects of bond indentures are presented in financial statements. tionale for accrual accounting. ne use of consolidated statements is justified. enoitounde eporting must be done at defined time intervals. n allowance for doubtful accounts is established. ambliud orl) ao podwill is recorded only at time of purchase. company charges its sales commission costs to expense.
5,6) (Assumptions, Principles, and Constraint) Presented below are a number of operational guidelines and prac- ave developed over time. ns assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use characteristics.) woll ir value changes are not recognized in the accounting records. oboo dodnemqinpo olse or to sanod 0) nancial information is presented so that investors will not be misled. tangible assets are amortized over periods benefited. how.vlane gricultural companies use fair value for purposes of valuing crops. obs ch enterprise is kept as a unit distinct from its owner or owners. pdmburcur 1 significant post-balance-sheet events are disclosed. evenue is recorded when the product is delivered. l important aspects of bond indentures are presented in financial statements. tionale for accrual accounting. ne use of consolidated statements is justified. enoitounde eporting must be done at defined time intervals. n allowance for doubtful accounts is established. ambliud orl) ao podwill is recorded only at time of purchase. company charges its sales commission costs to expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:E2-7 (LO5,6)
tices that have developed over time.
(Assumptions, Principles, and Constraint) Presented below are a number of operational guidelines and prac-
notteroige
000 al
Inom
Instructions
Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use
qualitative characteristics.)
(a) Fair value changes are not recognized in the accounting records.
(b) Financial information is presented so that investors will not be misled.
wol
(c) Intangible assets are amortized over periods benefited.
nemqinpsolsa onil" sto san od 0)
Gdngbwcup op
(d) Agricultural companies use fair value for purposes of valuing crops.
(e) Each enterprise is kept as a unit distinct from its owner or owners.
g the
edmbureut
(f) All significant post-balance-sheet events are disclosed.
(g) Revenue is recorded when the product is delivered.
(h) All important aspects of bond indentures are presented in financial statements.
(i) Rationale for accrual accounting.
was
AROWA
enoitountend
ntine
(j) The use of consolidated statements is justified.
(k) Reporting must be done at defined time intervals.
w 155Y odt ol gnibliud er) ao
pungb ori ogaarb of bobioob slloanos oni
(1) An allowance for doubtful accounts is established.
bro
(m) Goodwill is recorded only at time of purchase.
(n) A company charges its sales commission costs to expense.
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