Identify which GAAP most directly describes each of the following correct practices: _____________1. Tracy Regis owns two

Question:

Identify which GAAP most directly describes each of the following correct practices:

_____________1. Tracy Regis owns two businesses, Second Time Around Clothing and Antique Accents, both of which are sole proprietorships. In having financial statements prepared for the antique store, Regis should be sure that the revenue and expense transactions of Second Time Around are excluded from the statements of Antique Accents.

_____________2. In December 2019, Classic Coverings received a customer’s order to install carpet and tile in a new house that would not be ready for completion until March 2020. Classic Coverings should record the revenue for the order in March 2020, not in December 2019.

_____________3. If $30,000 cash is paid to buy land, the land should be reported on the purchaser’s balance sheet at $30,000 although the purchaser was offered $35,000 the following week.

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... 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...

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