Problem Set A

PA$1.$ L$.$O $3\mathrm{.}1$ For each of the following situations write the principle, assamplion, or consept that justifies or explains what occurred.

A$.$ A landscaper received a cuslomer's onder and eash prepayment to that? sod at a house that would not be ready for installation untill March of next year. The owner should recoed the revenue from the customer order in March of next year, not in December of this year.

B$.$ A company divides its income statements inte for quarters for the year.

C$.$ Land is purchased for sho$5,000$ essh; the land is reported on the loulance sheet of the purshaser ait $$205,000.$

D$.$ Beandy's Flower Shop is forecasting its balance sloet for the seat five years.

E$.$ When preparing financials for a compang, the outser makes sure that the expense transactions are kept separate from expenses of the obter compuny thut he owns.

F$.$ A company records the expenses incurred to penemale the reverses reported. Solution

A$.$

II$.$

C$.$

D$.$

II$.$