For Each of the Independent Situations Described Below, List the Assumption

question 26

Short Answer

For each of the independent situations described below, list the assumption, characteristic, concept, or constraint that has been violated, if any. List only one term for each case.
1. The Who Company reports only current assets and current liabilities on its balance sheet. Intangible assets and a 20-year mortgage payable are reported as a current asset and a current liability, respectively. Liquidation of the company is unlikely.
2. Gabi Company is in its third year of operation and has yet to issue financial statements. (Do not use full disclosure principle.)
3. Griffin Company is carrying inventory at its net realizable value of $ 110,000. The inventory had an original cost of $ 135,000.
4. Paul Company expenses some office equipment that is inexpensive even though it has a useful life that exceeds 1 year.
5. Singh Corporation has selected FIFO as its inventory cost flow formula during the current year. Next year it plans to change to the weighted average cost formula.

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Definitions:

Ethnographic Study

An ethnographic study is a qualitative research method focusing on the customs, practices, and social behaviors of specific cultures or communities, typically through fieldwork and participant observation.

Organizational Culture

The set of shared values, beliefs, behaviors, and practices that characterizes an organization and influences its members' actions and interactions.

Organizational Stories

Organizational stories are narratives shared within a company or institution that embody its values, culture, and history, often serving to indoctrinate, motivate, or unify employees.

Uniqueness Paradox

The idea that stories intended to express an organization’s uniqueness actually occur across a range of organizations.