for each of the independent situations described below, list the fundamental or enhancing been violated, if…

for each of the independent situations described below, list the fundamental or enhancing been violated, if any. list only one term for each case. 1. carrier company is in its third year of operation and has yet to issue financial statements. 2. larsen corporation has selected the fifo inventory costing method during the current year. last year it used the lifo method and next year it plans to change to the average cost method. 3. reiser company expenses some office equipment that is inexpensive even though it has a useful life that exceeds 1 year. etextbook and media

for each of the independent situations described below, list the fundamental or enhancing been violated, if any. list only one term for each case. 1. carrier company is in its third year of operation and has yet to issue financial statements. 2. larsen corporation has selected the fifo inventory costing method during the current year. last year it used the lifo method and next year it plans to change to the average cost method. 3. reiser company expenses some office equipment that is inexpensive even though it has a useful life that exceeds 1 year. etextbook and media

Answer

Brief Explanations:

  1. Timeliness is violated as financial statements should be issued regularly, and not doing so in the third - year of operation is a problem.
  2. Consistency is violated as the company is frequently changing its inventory costing method.
  3. Materiality is applied here. Expensing inexpensive office equipment with a long - term useful life is acceptable under the materiality principle as the cost is not significant enough to capitalize and depreciate over its useful life.

Answer:

  1. Timeliness
  2. Consistency
  3. Materiality