Question: Identify the financial statement qualitative characteristic or foundation that has been violated in each of the following scenarios. table [ [ Scenario , Description
Identify the financial statement qualitative characteristic or foundation that has been violated in each of the following scenarios.
tableScenarioDescriptionatableBill Co purchased a twoyear insurance policy and expensed the entireamount in the period of purchase.btableCharlie Co listed inventory at its market value of $ on the balancesheet even though it was purchased for $ctablePercy Co did not include the details of its property, plant, andequipment even though this information is relevant to users.dtableFred Co made a sale on the last day of the accounting period. Thecustomer paid for the item in the following month, so this sale wasincluded in the next period's financial statements.tableGeorge Co has plans to restructure its operations next year and will selloff about half of the business. This information was not included in thenotes to the financial statements because it does not affect the currentfinancial information.tableRon Co applied a certain accounting policy which allowed the companyto report higher assets and net income. A different accounting policywas available which would have resulted in a lower balance of assetsand net income.gtableGinny Co changed the accounting policy used to value property, plant,and equipment after using a different policy for years. There was nojustification for the change.
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