For two (2) of the following situations, (1) indicate whether you agree or disagree with the financial reporting practice employed and (2) state the accounting concept that is applied (if you agree) or violated (if you disagree). Please explain your answers.

1. Mount Union Company did not disclose that it was the defendant in a material lawsuit because the trial was still in progress.

2. Oregon Scoreboard Corporation files quarterly and annual financial statement with the SEC.

3. State Environmental paid insurance on its storage building for the next two years and charged the entire expenditure to insurance expense.

4. Galloway Pharmaceutical records revenue only after products have been shipped, even though customers pay Galloway 50% of the sales price in advance.