Accounting Principles 11 25 points Johnson Inc. reports salary expense of $30,000 in January (when they paid their employees) for work that was completed in December For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed following US GAAP) and state the basic assumption, pervasive constraint, or accounting principle that is applied if you agree) or violated Gif you disagree). Pick the best answer! - choose your answer with this treatment because of this principle choose your answer 12 25 points Johnson and Sons LLC discovers a $30 overstatement in revenue just prior to Issuance of their financial statements. They choose not to make a correction to t $240,000 revenue amount on their income statement Agree with this treatment because of this principles Relevance 13 25 points The president of Ramirez Corp. believes it is foolish to report financial informat on a yearly basis. Instead, the president believes that financial Information shou be disclosed only when significant new information is available related to the company's operations. Ramirez Corp. only publishes financial statements ever few years Agree with this treatment because of this principle: Periodicity 14 25 points Since Fert Inc. is a sole proprietorship the owner includes a number of persona items (including her house) on the firm's balance sheet. 1 Disagree with this treatment because of this principle: Relevance Time 11 25 points Johnson Inc reports salary expense of $30.000 in January when they paid their employees for work that was completed in December situations, indicate whether you agree or disagree with actice employed following US GAAP) and state the basic onstraint, or accounting principle that is applied if you disagree Pick the best answert choose your answer Choose your answer principle Disagree 12 25 Johnson and Sons LLC discovers a $30 overstatement in revenue just prior to issuance of their financial statements. They choose not to make correction to the $240,000 revenue amount on the income statement Agree with this treatment because of this principle 13 25 point The president of Ramire Corp beves it is toch to report and information on a yearly basisted the president believes that financial information should beded only when it new information is able related to the company's operations. Ramirer Corp.only publishes financial statements ery few years Agree withis treatment because of this price E with this treatment because of this principle choose your answer_ choose your answer 12 Economic entity 24 Matching Joh Comparability issu $24 Monetary unit | Going concern Reliability 30 overstatement in revenue jus s. They choose not to make a com ncome statement is principle: Materiality 13 25 points The president of Ramirez Corp. believes it is foolish to report financial infor on a yearly basis. Instead, the president believes that financial informations be disclosed only when significant new information is available related to the company's operations. Ramirez Corp. only publishes financial statements ev few years Agree with this treatment because of this principle: Periodicity 25 points Since Fert Inc. is a sole proprietorship the owner includes a number of personal items including her house on the he's balance sheet Disagree LIDO
