Presented below are procedures and practices followed by a number of different companies.

1. A company prepares consolidated financial statements for a subsidiary that it owns.

2. The decision to remove an asset from the balance sheet

3. A large sale on account is not recognized as revenue because collectability is an issue.

4. Disclosure of the liability from a lawsuit in the financial statements

5. Preparation of yearly financial statements

6. Using the Canadian dollar in financial statements

7. An energy company includes detailed information about its reserves in its notes to the financial statements.

Required

State the accounting principle or assumption that is most applicable in the above situations. Please clearly label each answer PLEASE USE CANADIAN ACCOUNTING STANDARDS!