Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. a. In May 2021, Regent Corporation recorded as revenue $5,000 received in advance from a customer for a job that would be completed in June 2021. Violation: (Yes/No) Applicable Assumption/Principle: b. Sally Maze made sure to keep her personal expenditures separate from her marketing company books. Violation: (Yes/No) Applicable Assumption/Principle: c. Gross Corporation purchased land for $100,000 on April 10, 2015. On March 5, 2021, Gross decided to increase the land to its fair value of $175,000. Violation: (Yes/No) Applicable Assumption/Principle:

There are principles and assumptions based on which whole accounting depends regarding how to enter…

Answered: For the following situations, identify…

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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Listed below are the current Accounting Assumptions and Principles

Economic Entity Assumption	Monetary Unit Assumption	Historical Cost Principle
Going Concern Assumption	Revenue Recognition Principle	Full Disclosure Principle
Time Period Assumption	Matching Principle

Required:
For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable.

a. In May 2021, Regent Corporation recorded as revenue $5,000 received in advance from a customer for a job that would be completed in June 2021.

Violation: (Yes/No)
Applicable Assumption/Principle:

b. Sally Maze made sure to keep her personal expenditures separate from her marketing company books.

Violation: (Yes/No)
Applicable Assumption/Principle:

c. Gross Corporation purchased land for $100,000 on April 10, 2015. On March 5, 2021, Gross decided to increase the land to its fair value of $175,000.

Violation: (Yes/No)
Applicable Assumption/Principle:

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