Question: Identify the basic assumption or broad accounting principle that was violated in each of the following situations. 1. Astro Turf Company recognizes an expense, cost

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

1. Astro Turf Company recognizes an expense, cost of good sold, in the period the product is manufactured.

2. McCloud Drug Company owns a patent that is purchased three years ago for $2 million. The controller recently revalued the patent to its approximate market value of $8 million.

3. Philips Company pays the monthly mortgage on the home of its president, Larry Crosswhite, and changes the expenditure to miscellaneous expense.

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