Identify the basic assumption or broad accounting principle that was violated in each of the following situations.

1. Pastel Paint Company purchased land two years ago at a price of $250,000 Because the value of the land has appreciated to $400,000 the company has valued the land at$400,000 in it's most recent balance sheet.

2. Atwell Corp has not prepared financial statements for external users for over three years

3. The Klingon Company sells farm machinery Revenue from a large order of machinery from a new buyer was recorded the day the order was received

4. Don Smith is the sole owner of a company called Hardware City The company recently paid a $150 utility bill for Smith's personal residence and recorded a $150 expense

5. Golden Book Company purchased a large printing machine for $1,000,000 (a material amount) and recorded the purchase as an expense

6. Ace Appliance company is involved in a major lawsuit involving injuries sustained by some of it's employees in the manufacturing plant. The company is being sued for $2,000,000 a material amount an is not insured. The suit was not disclosed in the most recent financial statements because no settlement had been reached

Answer options are:

Expense recognition; materiality

Revenue recognition

The economic entity assumption

The full disclosure principle

The historical cost (original transaction value) principle

The periodicity assumption

Select one answer per question please