Question

Identify which of the conceptual framework elements have been violated by the following events. Some questions have more than one acceptable answer.
1. The owner is in the process of purchasing a building, and the closing date for the transaction is next month. The building is shown as an asset on the balance sheet.
2. Office furniture was donated to the company by the owner's mother. The owner listed the furniture on the balance sheet with a value of $1,000.
3. The financial statements were produced eight months after the year-end.
4. The accountant prepared the financial statements without following Canadian GAAP.
5. The owner bought a piece of equipment on sale, paying $1,500 instead of $2,800. The accountant recorded the equipment with a value of $2,800.
6. An advance payment for future work was recorded as revenue.


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  • CreatedSeptember 15, 2015
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