Here are some accounting reporting situations. (a) Dorfner Company recognizes revenue at the end of the production

Question:

Here are some accounting reporting situations.
(a) Dorfner Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.
(b) Rayms Company is in its fifth year of operation and has yet to issue financial statements. (Do not use the full disclosure principle.)
(c) Tariq, Inc. is carrying inventory at its original cost of $100,000. Inventory has a fair value of $110,000.
(d) Leer Hospital Supply reports only current assets and current liabilities on its Property, plant, and equipment and bonds payable are reported as current assets and current liabilities, respectively. of the company is unlikely.
(e) Kim Company has inventory on hand that cost $400,000. Kim reports inventory on its at its current fair value of $425,000.
(f ) Kris Piwek, president of Classic Music Company, bought a computer for her personal use. She paid for the computer by using company funds and debited the “Computers” account.

Instructions
For each situation, list the assumption, principle, or constraint that has been violated, if any. Some of these assumptions, principles, and constraints were presented in earlier chapters. List only one answer for each situation.

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... 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... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....