Presented below are procedures and practices followed by Maybe Company Because the company's income is low this year, Maybe switched from accelerated depreciation to straight line depreciation The president of Maybe believes it is foolish to report financial information on a yearly basis She believes that financial information should be disclosed only when significant new information is available related to the company's operations Maybe decides to establish a large loss and related liability this year because of the possibility that it may lose a pending lawsuit The possibility of loss is considered remote by the corporations lawyers One of the corporations executives purchased a new home computer for personal use with company money, charging Miscellaneous Expense The corporation has not established an Allowance for Doubtful Accounts, even though there are a significant number of their accounts that are either slow paying or may not pay their debts in full Required For each of these, state the assumption, principle, or qualitative characteristic that is violated Please clearly label each answer PLEASE USE CANADIAN ACCOUNTING STANDARDS

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Presented below are procedures and practices followed by Maybe Company. Because the company's income is low this year, Maybe switched from accelerated depreciation to straight-line

Presented below are procedures and practices followed by Maybe Company.

Because the company's income is low this year, Maybe switched from accelerated depreciation to straight-line depreciation.
The president of Maybe believes it is foolish to report financial information on a yearly basis. She believes that financial information should be disclosed only when significant new information is available related to the company's operations.
Maybe decides to establish a large loss and related liability this year because of the possibility that it may lose a pending lawsuit. The possibility of loss is considered remote by the corporations lawyers.
One of the corporations executives purchased a new home computer for personal use with company money, charging Miscellaneous Expense.
The corporation has not established an Allowance for Doubtful Accounts, even though there are a significant number of their accounts that are either slow paying or may not pay their debts in full.

Required

For each of these, state the assumption, principle, or qualitative characteristic that is violated. Please clearly label each answer PLEASE USE CANADIAN ACCOUNTING STANDARDS