For each of these itens, list the assumption,principle, information characteristic, or convention that is violated. Write yourLearning Task 4: Below are a number of accounting proccdures and practices inProspere General Merchandise.answer in your notebook.ác company prepares financial reports are based on the SFAS promulgatedby the ASC.4. The assets and owner's couity are reported at fair value but business obligations are reported at historical cost.3. The company maintains only one employee to function as accountant, inter-nal auditor, collector and treasurer.4. The financial reports are always delayed.5. Due to recession, estimated future earnings are reported in the current finan-cial reports of Prospere General Merchandise.6. The accounting methods and procedures used are regularly changed semi-annually.7. The accountant records transactions as desired by the owner without propersupporting documents.8. The financial reports do not include minutes of the meeting, business con-tracts, and future plans because they not financial in nature.9. The company refuse to be audited by an external auditor because it has al-ready an internal auditor who religiously verifies the financial reports.10. The company acquired a refillable pentel amounting to P200 and depreciatedit because its estimated life is good for five years.

Assets refer to a form of resources that provides value in terms of money or other economic value to…

rospere General Merchandise. earning Task 4: Below are a nu "ospere General Merchandise. rinciple, information characteris aswer in your notebook. The company prepares financ by the ASC. The assets and owner's cani

rospere General Merchandise. earning Task 4: Below are a nu "ospere General Merchandise. rinciple, information characteris aswer in your notebook. The company prepares financ by the ASC. The assets and owner's cani

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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Question

For each of these itens, list the assumption,
principle, information characteristic, or convention that is violated. Write your
Learning Task 4: Below are a number of accounting proccdures and practices in
Prospere General Merchandise.
answer in your notebook.
ác company prepares financial reports are based on the SFAS promulgated
by the ASC.
4. The assets and owner's couity are reported at fair value but business obliga
tions are reported at historical cost.
3. The company maintains only one employee to function as accountant, inter-
nal auditor, collector and treasurer.
4. The financial reports are always delayed.
5. Due to recession, estimated future earnings are reported in the current finan-
cial reports of Prospere General Merchandise.
6. The accounting methods and procedures used are regularly changed semi-
annually.
7. The accountant records transactions as desired by the owner without proper
supporting documents.
8. The financial reports do not include minutes of the meeting, business con-
tracts, and future plans because they not financial in nature.
9. The company refuse to be audited by an external auditor because it has al-
ready an internal auditor who religiously verifies the financial reports.
10. The company acquired a refillable pentel amounting to P200 and depreciated
it because its estimated life is good for five years.

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