2. If a company no longer has a going concern assumption, how are assets and liabilities

measured?

3. Explain how the periodicity assumption causes accruals and deferrals in accrual-basis

accounting.

4. Why must related party transactions be disclosed? What needs to be disclosed?

5. How are current assets and current liabilities inter-related?

6. Provide two examples each for (A) a recording error that would not cause the trial balance

to be out of balance and (B) an error that would create an imbalance.