You are interning as a CPAs assistant and helping prepare financial statements when you come across a transaction that causes you doubt. Using your imagination, in a 150-200-word response, describe that transaction and how you would go about researching the proper GAAP principles. Which principle(s) apply to the transaction you are feeling doubtful about?

How would the principle(s) guide you in the next steps you would take to resolve the issue?

(please explain so I can understand)