Hello,

I need a detailed explanation on why these are the answers:

Thanks!

Exercise 2(GAAP qualitative characteristics [LO1-7]).The conceptual framework indicates the desired fundamental and enhancing qualitative characteristics of accounting information. Several constraints impede achieving these desired characteristics. Answer each of the following questions related to these characteristics and constraints.

1.Which component would allow a large company to record the purchase of a $120 printer as an expense rather than capitalizing the printer as an asset?

-materiality

Exercise 4(basic assumptions and principles [LO1-7,8,9])Identify the accounting concept that wasviolatedin each of the following situations.:

1.Atwell Corporation has not prepared financial statements for external users for over three years.

-the periodicity assumption and Timileness

2.Don Smith is the sole owner of a company called Hardware City. The company recently paid a $150 utility bill for Smith's personal residence and recorded a $150 expense.

-the economic entity assumption

Exercise 5(basic assumptions and principles [LO1-8,9])For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the accounting concept that is applied (if you agree) or violated (if you disagree).:

1.Gigantic Corporation purchased two small calculators at a cost of $32.00. The cost of the calculators was expensed even though they had a three-year estimated useful life.

-AgreeMateriality

2.Esquire Company provides financial statements to external users every three years.

-DisagreePeriodicity assumption