Exercise 2-07 presented below are a number of operational guidelines and practices that have developed over time. select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (do not use qualitative characteristics.)
(a). fair value changes are not recognized in the accounting records. select an option
(b) . financial information is presented so that investors will not be misled. select an option
(c) . intangible assets are amortized over periods benefited. select an option
(d). agricultural companies use fair value for purposes of valuing crops. select an option
(e) . each enterprise is kept as a unit distinct from its owner or owners. select an option
(f) . all significant post-balance-sheet events are disclosed. select an option
(g). revenue is recorded when the product is delivered. select an option
(h) . all important aspects of bond indentures are presented in financial statements. select an option
(i) . rationale for accrual accounting. select an option
(j) . the use of consolidated statements is justified. select an option
(k) . reporting must be done at defined time intervals. select an option
(l) . an allowance for doubtful accounts is established. select an option
(m) . goodwill is recorded only at time of purchase. select an option
(n) . a company charges its sales commission costs to expense.