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Find the GAAP that has been followed/violated in the following scenarios. 1- CCF food used the same accounting policy for depreciation as last year, even
Find the GAAP that has been followed/violated in the following scenarios. 1- CCF food used the same accounting policy for depreciation as last year, even though it could have reported a higher net income by switching to a different method. 2- A's Restaurant categorize small expenses such as pens, pencil and book together as office supplies expense because the cost of recording them as assets accounts outweighed the benefits. 3- CHINA Spa has committed to opening a second location in the next eight months. Details regarding this expansion were included in the financial information. 4- GS Food Truck Co. applied a certain accounting policy that allowed the company to report higher assets and net income. A different accounting policy was available that would have resulted in a lower balance of assets and net income. 5- GIN Restaurant Consulting prepaid cash for its annual insurance policy. The amount was expensed on a monthly basis as it was used up. 6- A bank decided not to grant a loan to LA Hotels after a customer filed a substantial lawsuit. LA did not include any mention of the lawsuit in the financial statements or in the notes to the financial statements. 7- Apple's Pub changed the accounting policy used to value property and equipment after using a different policy for 15 years. There was no justification for the change
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