For each of the following situations, (1) indicate whether you agree or disagree with the financial reporting practice employed and (2) state the accounting concept that is applied (if you agree) or violated (if you disagree).1. Winderl Corporation did not disclose that it was the defendant in a material lawsuit because the trial was still in progress.2. Alliant Semiconductor Corporation files quarterly and annual financial statements with the SEC.3. Reliant Pharmaceutical paid rent on its office building for the next two years and charged the entire expenditure to rent expense.4. Rockville Engineering records revenue only after products have been shipped, even though customers pay Rockville 50% of the sales price in advance.
For each of the following situations, (1) indicate whether you agree or disagree with the financial reporting practice employed and (2) state the accounting concept that is applied (if you agree) or violated (if you disagree).
1. Winderl Corporation did not disclose that it was the defendant in a material lawsuit because the trial was still in progress.
2. Alliant Semiconductor Corporation files quarterly and annual financial statements with the SEC.
3. Reliant Pharmaceutical paid rent on its office building for the next two years and charged the entire expenditure to rent expense.
4. Rockville Engineering records revenue only after products have been shipped, even though customers pay Rockville 50% of the sales price in advance.
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