Identify the accounting concept that was violated in each of the following situations.

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Astro lurt company recognizes an expense, cost of goods sold, in the period the product is manufactured.

McCloud Drug Company owns a patent that it purchased three years ago for $$2$ million. The controller recently revalued the patent

to its approximate market value of $$8$ million.

Philips Company pays the monthly mortgage on the home of its president, Larry Crosswhite, and charges the expenditure to

miscellaneous expense.

$\frac{1}{2}$

$\frac{2}{3}$