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In: Accounting

The following are transactions recorded during the current year. For each transaction, determine which component of...

The following are transactions recorded during the current year.
For each transaction, determine which component of the conceptual framework (i.e., qualitative characteristic, element, or principle) was violated.

Please be specific about which element, principle etc was violated

1. Ordinary operating maintenance on equipment was recorded as follows:

Equipment 2,300

Accounts Payable 2,300

2. Received an advance on a custom order for merchandise that will be shipped during the next accounting year.

Cash 9,000

Sales Revenue 9,000

3. Comany is holding inventory on consignment for Rubber Ltd. Will only pay Rubber when a sale is made to a customer. The following entry was made when it received the inventory:

Inventory 17,000

Accounts Payable 17,000

4. On the last day of the accounting period, a 12-month insurance policy was purchased. The insurance coverage is for the next accounting year.

Insurance Expense 2,000

Cash 2,000

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ekkarill92 answered 2 years ago
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