The following situations involve accounting principles and assumptions. For each of the three situations, state if the accounting method used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated. Accounting Method Principle/Assumption 1. Tina Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Tina reports the buildings at fair value in its accounting reports. Monetary unit assumption Historical cost principle Economic entity assumption 2. Fayette Company includes in its accounting records only transaction data that can be expressed in terms of money. 3. Omar Shariff, president of Omar's Oasis, records his personal living costs as expenses of the Oasis. Indicate whether each of the following items is an asset, liability, or part of stockholders' equity. (a) Accounts receivable (b) Salaries and wages payable (c) Equipment (d) Supplies (e) Dividends (f) Notes payable v Classify each item as an asset, liability, or stockholders' equity. Accounts payable Common stock