You have been consulted as an external auditor to state whether you agree or disagree with the financial reporting practice employed, and briefly explain the reason for your answer.

1. Bangalor Corporation's accountant increased the book value of its inventory from its original cost of $1 million to its recently appraised value of $6 million.
2. Briton Corporation paid for the personal travel of its chief financial officer and charged travel expense.
3. At the end of its 2020 financial year, Dower Ltd received an order from a customer for $60,000. The merchandise will ship early in 2021. Because the sale was made to a long-time customer and the invoice was paid in 2020, the controller recorded the sale in 2020.
4. On July 1, 2021 , Fiorensic Ltd paid $12,000 to its insurance company for one-year comprehensive insurance coverage. Fiorensic Ltd recorded the entire expenditure as an expense in 2021.
5. The Maxwell Company included a note in its financial statements that described a pending lawsuit against the company.
6. The Malibu Corporation, a company whose securities are publicly traded, prepares monthly, quarterly, and annual financial statement for internal use but disseminates to external users only the annual financial statements.