Listed below are several statements that relate to financial accounting and reporting. Identify the basic assumption, broad accounting principle, or pervasive constraint that applies to each statement.
1. Sirius Satellite Radio Inc. files its annual and quarterly financial statements with the SEC.
2. The president of Applebee’s International, Inc. travels on the corporate jet for business purposes only and does not use the jet for personal use.
3. Jackson Manufacturing does not recognize revenue for unshipped merchandise even though the merchandise has been manufactured according to customer specifications.
4. Lady Jane Cosmetics depreciates the cost of equipment over their useful lives.