Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement. 1. Jenna Asare is the sole owner of Asare Appliances. Jenna borrowed $100,000 to buy a new home to be used as their personal residence. This liability was not recorded in the records of Asare Appliances. 2. Apple Inc. distributes an annual report to its shareholders. 3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives. 4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value of $200,000. 5. Honeywell International Inc. records revenue when products are delivered to customers, even though the cash has not yet been received. 6. Liquidation values are not normally reported in financial statements even though many companies do go out of business. 7. IBM Corporation, a multibillion-dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense.
Listed below are several statements that relate to
1. Jenna Asare is the sole owner of Asare Appliances. Jenna borrowed $100,000 to buy a new home to be used as their personal residence. This liability was not recorded in the records of Asare Appliances.
2. Apple Inc. distributes an annual report to its shareholders.
3. Hewlett-Packard Corporation
4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value of $200,000.
5. Honeywell International Inc. records revenue when products are delivered to customers, even though the cash has not yet been received.
6. Liquidation values are not normally reported in financial statements even though many companies do go out of business.
7. IBM Corporation, a multibillion-dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense.
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