For each of the following cases, respond to the question asked and indicate the accounting principle or

Question:

For each of the following cases, respond to the question asked and indicate the accounting principle or concept that applies.
1. Arrington Company's net income is about $2.0 million a year. Arrington charges to expense all property insurance premiums when paid. Last year approximately $3,500 of these premiums represented amounts applicable to future years. Is this proper? Why or why not?
2. Lopez Products charges all of its marketing costs to expense when incurred. Why?
3. Busby Company charges off the cost of all magazine advertising in the year it is incurred even though the advertising probably results in some sales in later years. Why?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...