Required: Identify the accounting
principle or assumption that best applies to each situation
below:
1. ABC Company purchases a piece of equipment for $55,000 cash. The
equipment is actually worth $60,000, but the equipment is recorded
at $55,000.
2. ABC Company completes a landscaping job for a client on June 25.
ABC Company records revenue on June 25, even though the client will
not be billed until July.
3. ABC Company includes all information that may be relevant to a
financial statement user's decision making in their completed
financial reports.