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Question 24 Identify the financial statement qualitative characteristic or foundation that has been violated in each of the following scenarios. Quiz nav Not yet answered Scenario Description Marked out of Bill Co. purchased a two-year insurance policy and expensed the entire 7.30 amount in the period of purchase, P Flag Charlie Co. listed inventory at its market value of $31,000 on the balance question b) sheet, even though it was purchased for $20,000. C) Percy Co. did not include the details of its property, plant, and equipment, even though this information is relevant to users. Fred. Co made a sale on the last day of the accounting period. The d) customer paid for the item in the following month, so this sale was included in the next period's financial statements, George Co. has plans to restructure its operations next year and will sell off e) about half of the business. This information was not included in the notes to the financial statements because it does not affect the current financial information. Ron Co. applied a certain accounting policy which allowed the company to report higher assets and net income. A different accounting policy was available which would have resulted in a lower balance of assets and net income Ginny Co. changed the accounting policy used to value property, plant. g) and equipment after using a different policy for 10 years There was no justification for the change