Identifying and Analyzing Qualitative Characteristics, Principles, Assumptions The FASB's Statements of Financial Accounting Concepts are intended to provide guidance in analyzing and recording transactions and events. Below are several such cases. Indicate the accounting concept that applies to each case and state whether that concept was violated or not. Choose from qualitative characteristics, accounting assumptions, and accounting principles. Case Concept Analysis a. Sage Company used FIFO In 2019, LIFO In 2020, and FIFO In 2021. Comparability = Yes b. Sage acquired land on credit by signing a $66,000, one-year, noninterest-bearing note. The asset account was debited for $66,000. The interest rate for a similar purchase is 10%. Going concern c. Sage Issues Its annual financial report nine months after the end of the annual reporting period. *No Periodicity = *No = d. Sage recognizes all sales revenues on the cash basis. e. Sage records Interest expense only on the payment dates. g. Sage never uses notes or supplemental schedules as a part of its financial reports. Timeliness * Yes Understandability = * Yes = f. Sage Includes among its financial statement elements an apartment house owned and operated by the owner of the company. Economic entity = Yes = Periodicity = *No *