Answers is given in the last picture. Please give an explanation of each question&answer.

Problem 2 For each of the statements below, state the accounting principle or assumption (e.g. consistency, going concern etc), which is most applicable: a. The company uses the same accounting principle from period to period. b. Financial statements are prepared periodically. c. Subscriptions paid in advance are recorded as unearned subscription income. d. All significant financial transactions are reported. e. Personal transactions of the stockholders are not recorded on the company's financial statements. f. Land is recorded at $10,000, which was the amount paid. Current value of the land is $25,000. The accountants determine that the company is in danger of going bankrupt and therefore refuse to certify the statements as prepared according to generally accepted accounting principles. h. The company loses a major customer and does not record a loss. ANSWER: PROBLEM 2 Statement Accounting Principle/Assumption a. Problem 2 b. c. d. e. f. consistency time period realization full disclosure business entity historical cost going concern transaction approach h