Identify which of the conceptual framework elements have been violated by the following events. Some questions have

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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.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting

ISBN: 978-0176509743

Volume 1, 2nd canadian Edition

Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,

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