Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement. 3. 4. Jim Marley is the sole owner of Marley's Appliances. Jim borrowed 1. $100,000 to buy a new home to be used as his personal residence. The economic entity assumption This liability was not recorded in the records of Marley's Appliances. 2. Apple Inc. distributes an annual report to its shareholders. The periodicity assumption Hewlett-Packard Corporation depreciates machinery and equipment Materiality over their useful lives Crosby Company lists land on its balance sheet at $120.000, its original purchase price, even though the land has a current fair value The historical cost (original transaction value) principle of $200.000 Honeywell International Inc. records revenue when products are delivered to customers, even though the cash has not yet been Revenue recognition received. Liquidation values are not normally reported in financial statements even though many companies do go out of business. The going concern assumption IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a Expense recognition (also the going concern assumption) number of years, the company recorded the purchase as an expense. 6. 6. 7