The answer options are: expense recognition, revenue recognition, the full disclosure principle, the historical cost principle, and the periodicity assumption.

For each of the following situations. (1) Indicate whether you agree or disagree with the financial reporting practice employed and (2) state the accounting concept that is applied (if you agree) or violated (If you disagree). 1. Winderi Corporation did not disclose that it was the defendant in a material lawsuit because the trial was still in progress. 2 Allant Semiconductor Corporation files quarterly and annual financial statements with the SEC. 3. Rellant Pharmaceutical paid rent on its office building for the next two years and charged the entire expenditure to rent expense. 4. Rockville Engineering records revenue only after products have been shipped, even though customers pay Rockville 50% of the sales price in advance. Answer is complete but not entirely correct. 1. 2. Disagree Agree Disagree Agree The historical cost principle The periodicity assumption The full disclosure principle Expense recognition X 3. 4