Assignment -1 Answer the following question and submit by the Due date - 18th Oct 2020 1. For each of the items listed below, identify the appropriate financial statement element or elements. 1. Obligation to transfer cash or other resources as a result of a past transaction. 2. Dividends paid by a corporation to its shareholders. 3. Inflow of an asset from providing a good or service. 4. The financial position of a company. 5. Increase in equity during a period from non-owner transactions. 6. Increase in equity from peripheral or incidental transaction. 7. Sale of an asset used in the operations of a business for less than the asset's book value. 8. The owners' residual interest in the assets of a company. 9. An item owned by the company representing probable future benefits. 10. Revenues plus gains less expenses and losses. 11. An owner's contribution of cash to a corporation in exchange for ownership shares of stock. 12. Outflow of an asset related to the production of revenue. 2. Identify the basic assumption or broad accounting principle that was violated in each of the following situations. 1. JK Company purchased land two years ago at a price of K360,000. Because the value of the land has appreciated to K400,000, the company has valued the land at K400,000 in its most recent balance sheet. 2. Blue star Corporation has not prepared financial statements for external users for over three years. 3. The JK Company sells farm machinery. Revenue from a large order of machinery from a new buyer was recorded the day the order was received. 4. Don Smith is the sole owner of a company called Hardware City. The company recently paid a K150 utility bill for Smith's personal residence and recorded a K150 expense. 5. SK Books Company purchased a large printing machine for K2,000,000 (a material amount) and recorded the purchase as an expense. 6. Ace Appliance Company is involved in a major lawsuit involving injuries sustained by some of its employees in the manufacturing plant. The company is being sued for K2,500,000, a material amount, and is not insured. The suit was not disclosed in the most recent financial statements because no settlement had been reached