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

question 119

Short Answer

For each of the independent situations described below, list the assumption, concept, constraint, or recognition criteria that have been violated, if any. List only one term for each case.
1. Chris Burgess, MD, had the clinic accountant prepare his personal tax return. He paid the accountant using clinic funds and debited the clinic's "Professional Fees" account.
2. Chu Company does not use an account for allowance for doubtful accounts. Instead, accounts receivable are written off directly to Bad Debt Expense if they remain unpaid after 24 months.
3. Equipment is carried at its fair value on the Chipawa Company balance sheet, which is $ 25,000 higher than cost. Fontaine Chipawa has not adopted the revaluation model for accounting for long-lived assets.
4. Depreciation Expense for Rowland Company is $ 15,000. The company will have a net loss of $ 12,000 if the depreciation is recorded, but a profit of $ 3,000 if depreciation is deferred a year. The decision is made to defer the depreciation to next year which is expected to be more profitable.
5. The land of Fountain Company is appraised at $ 200,000 more than its cost. The new accountant for the company recommends booking the appraised value and showing a "Gain from Revaluation" on the income statement. Fountain Company has not adopted the revaluation model for accounting for long-lived assets.

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Definitions:

Puberty

The phase in human development during which a child matures into physical sexual maturity and becomes capable of reproduction.

Sexual Partners

Individuals with whom one engages in sexual relations or activities.

Boys

Male children or young men, often characterized by their age, development stages, and social roles distinct from adults and girls.

Romantic Comedy

A genre of movies or books focusing on romantic relationships in a light-hearted and humorous way.