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For each of the independent situations described below, list the assumption, characteristic, concept, or constraint that has been violated, if any. List only one term

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For each of the independent situations described below, list the assumption, characteristic, concept, or constraint that has been violated, if any. List only one term for each case. 1. The Who Company reports only current assets and current liabilities on its balance sheet. Intangible assets and a 20 -year mortgage payable are reported as a current asset and a current liability, respectively. Liquidation of the company is unlikely. 2. Gabi Company is in its third year of operation and has yet to issue financial statements. (Do not use full disclosure principle.) 3. Griffin Company is carrying inventory at its net realizable value of $110,000. The inventory had an original cost of $135,000. 4. Paul Company expenses some office equipment that is inexpensive even though it has a useful life that exceeds 1 year. 5. Singh Corporation has selected FIFO as its inventory cost flow formula during the current year. Next year it plans to change to the weighted average cost formula. In the following transactions, indicate when revenue should be recognized: 1. In September, La Cloche University collects tuition revenue for the term from students. The term runs from September through December. 2. Burns Island Company sells merchandise with terms of 2/10,n/30, FOB destination. 3. The Ottawa Senators sell season tickets to games in Canadian Tire Centre. Fans can purchase the tickets at any time, although the season doesn't officially begin until September. It runs from September through May. 4. Canada Airline sells you a refundable airline ticket in September for your flight home at Christmas. 5. The University Bookstore has the following return policy for textbook sales: "Textbooks (new and used) may be returned for seven calendar days from the start of classes. After that time, textbooks (new and used) may be returned within 48 hours of purchase." For each of the independent situations described below, list the assumption, characteristic, concept, or constraint that has been violated, if any. List only one term for each case. 1. The Who Company reports only current assets and current liabilities on its balance sheet. Intangible assets and a 20 -year mortgage payable are reported as a current asset and a current liability, respectively. Liquidation of the company is unlikely. 2. Gabi Company is in its third year of operation and has yet to issue financial statements. (Do not use full disclosure principle.) 3. Griffin Company is carrying inventory at its net realizable value of $110,000. The inventory had an original cost of $135,000. 4. Paul Company expenses some office equipment that is inexpensive even though it has a useful life that exceeds 1 year. 5. Singh Corporation has selected FIFO as its inventory cost flow formula during the current year. Next year it plans to change to the weighted average cost formula. In the following transactions, indicate when revenue should be recognized: 1. In September, La Cloche University collects tuition revenue for the term from students. The term runs from September through December. 2. Burns Island Company sells merchandise with terms of 2/10,n/30, FOB destination. 3. The Ottawa Senators sell season tickets to games in Canadian Tire Centre. Fans can purchase the tickets at any time, although the season doesn't officially begin until September. It runs from September through May. 4. Canada Airline sells you a refundable airline ticket in September for your flight home at Christmas. 5. The University Bookstore has the following return policy for textbook sales: "Textbooks (new and used) may be returned for seven calendar days from the start of classes. After that time, textbooks (new and used) may be returned within 48 hours of purchase

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