For each of the following, identify the primary GAAP that has been violated and explain why 1 Delta Company prepared its first set of financial statements for the three years ended July 31, 2014 2 Warren Consulting purchased $9,800 of supplies on September 30, 2014, and debited Office Supplies Expe...

1 The timeliness principle has been violated since businesses must report at regular inter ...

For each of the following, identify the primary GAAP that has been violated and explain why. 1.

Question:

For each of the following, identify the primary that has been violated and explain why.
1. Delta Company prepared its first set of for the three years ended July 31, 2014.
2. Warren Consulting purchased $9,800 of supplies on September 30, 2014, and debited Office Supplies Expense. Warren's year-end is September 30.
3. On May 3, 2014, Mindy Car Wash collected $3,000 in advance from a new limousine company to begin operating June 1, 2014. Mindy credited a revenue account for the $3,000.
4. On November 15, 2014, TelsCo rented equipment for $1,500. 1'elsCo is not recording the transaction until it pays (payment is required 15 days from the rental date).
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...