Identify which concept (qualitative characteristic, accounting principle, assumption) best

applies to or is violated in the following scenarios: & tell me if it is an application or

violation.

13. A company issues it annual financial report nine months after yearend.

14. A company reports Land on the balance sheet, as the sum of two purchase amounts, for

land purchased in 1980 and land purchased in 2021.

15. A company recorded sales revenue when it received the order from a customer, but

shipped the goods a month later.

16. A start-up company chose to use average cost for inventory after research indicated that

average cost was the most typical method used by its competitors.

17. The company recorded a $27.50 tool as an asset with a 10-year estimated life.

18. A parent company is consolidated with a wholly owned subsidiary to produce consolidated

financial statements.

19. Stock bought back from shareholders was reported as an asset on the balance sheet.

20. A company believes it is reasonable to depreciate its building over a 40-year life when it

also has 30-year bonds.

21. A public company reports results for each quarter and yearend.

.