For each of the following, identify which GAAP was violated by Delco Consulting In cases where more than one GAAP applies, name the primary GAAP that was not followed a Delco performed work for a client located in China and collected 8,450,000 RMB (renminbi, the Chinese currency), the equivalent of...

For each of the following, identify which GAAP was violated by Delco Consulting. In cases where more

Question:

For each of the following, identify which was violated by Delco Consulting. In cases where more than one applies, name the primary that was not followed.
a. Delco performed work for a client located in China and collected 8,450,000 RMB (renminbi, the Chinese currency), the equivalent of about $1,320,000 Canadian. Delco recorded it as 8,450,000.
b. Delco collected $180,000 from a customer on December 20, 2014, for work to be done in February 2015. The $180,000 was recorded as revenue during 2014. Delco's year-end is December 31.
c. Delco's December 31, 2014, showed total assets of $840,000 and liabilities of $1,120,000. The income statements for the past six years have shown a trend of increasing losses.
d. Included in Delco's assets was land and a building purchased for $310,000 and reported on the at $470,000.
e. Delco's owner, Tom Del, consistently buys personal supplies and charges them to the company. 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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...