GAAP minicases

GAAP minicases - GB 112 GAAP MINICASES Indicate the...

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GB 112 GAAP MINICASES Indicate the applicable accounting concept(s) and/or principle(s) that are being violated in the following situations. Provide an explanation for your answer. 1. The Levesque Overseas Company faces possible takeover of foreign facilities and possible losses on amounts owed by various customers on the verge of bankruptcy. The company president has decided that these possibilities should not be noted on the financial statements because she still hopes they will not take place. 3. The treasurer of the Osterheld and O’Leary Wine Company wishes to prepare financial statements only during downturns in their wine production, which occur periodically when the corn crop fails. The treasurer states that it is at such times that the statements could most easily be prepared. In no event would more than 36 months pass without statements being prepared. - time period concept 4. The Holmes and Howe Hamburger Hut, a fast-food company, sells franchises for $50,000, accepting a $2,000 down payment and a 50-year note for the remainder. Hamburger Hut
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GAAP minicases - GB 112 GAAP MINICASES Indicate the...

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