Faithful representation

Understandability

Relevance

Timeliness

Neutrality

Comparability

Relevance

(h) Community Health Foods Ltd signed a legal agreement to finance the purchase of

(g) Precise Ltd, a multinational drilling company, reported separately its paper, paper clips. and pens in the balance sheet rather than reporting a single line item for office supplies. Total office supplies were \$5,000

World Talk Corporation used terminology in its financial statements and notes to the financial statements that is not commonly used in financial reporting and did not provide explanations of the terminology.

(d) Chapman Ltd. switches inventory cost formulas from average to FIFO and back to average in a three-year period.

(e)

Enco Ltd. Intentionally recorded revenue in 2020 for sales made in 2021 to ensure that

management would receive their bonuses, which were based on profits.

(c) Silver Mining Ltd. is the only company in the mining industry that uses the straight-line method to depreciate its mining equipment.

(b) Owens Corporation does not issue its annual financial statements for the year ended December 31, 2020, until December 2021.

(a) Allen Ltd. reported its merchandise inventory at a net realizable value of $25,000. The company's auditors disagree with this value and estimated the net realizable value to be $20,000