Identifying Violations of Principles and Assumptions Identify the accounting assumption or principle that is most violated in each of the cases 1 through 8. Case Accounting assumption or principle " 4 " Economic entity Expense recognition Full disclosure Going concern Measurement Monetary unit 1. Thrive Inc. adjusted amounts in its financial statements for the effect of inflation over the past five years. 2. Soni Corp. recorded a sale at the time of the customer order, even though the item was shipped several days later. 3. Harper Inc. adopted the new revenue recognition accounting standard in the current year but failed to disclose the impact on financial statements, which is material. 4. The expense for a one-year maintenance contract for Lazer Inc. was recorded in January of the year of the contract. 5. A personal loan of the president of Lee Corp. was included in the liabilities on the balance sheet of Lee Corp. 6. Equipment recorded in the accounting records of Atlanta Inc. appreciated $100,000 from last year to this year. Atlanta Inc. recorded this unrealized gain in the income statement as it increased the asset value. 7. Bell Tech Inc., a private corporation, provides financial statements to its shareholders every two years. 8. Wilderness Inc. depreciated fixed assets (over 5 years) in its current financial statements even though liquidation of the company was imminent. Check Previous Save Answers