For each item that follows, identify the foundational principle of accounting that best describes it.
(a) For its annual repom, Sumsong Corp. divides its economic activities into 12-month periods.
(b) Sullivan, Inc. does not adjust amounts in its financial statements for the effects of inflation.
(c) Kiran Ltd. repom current and non-current classifications in its statement of financial position.
(d) In preparing its consolidated financial statements, Paddy Corporation assesses if it has the power to direct the other entity's activities.
(e) Jaspreet Corporation reports revenue in its income statement when it is earned even if cash has not been collected.
(f) Duong Enterprises normally includes business transactions in its general ledger when the item meets the definition of an element (as defined in the conceptual framework) and the item is measurable.
(g) Gomez, Inc. provides information about pending lawsuits in the notes to its financial statements.
(h) Douglas Farms reports land on its statement of financial position at the amount paid to acquire it, even though the estimated fair value is higher.
(i) King Corporation uses fair value measurements for its financial instruments portfolio.
(j) Magnificent Inc. assumes that it will continue to operate into the foreseeable future.

  • CreatedSeptember 18, 2015
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