Unformatted text preview: though the land has a current market value of $200,000. Historical cost or original transaction value principle 5. Honeywell Corporation records revenue when products are delivered to customers, even though the cash has not yet been received. Realization principle or revenue recognition principle 6. Liquidation values are not normally reported in financial statements even though many companies do go out of business. Going concern assumption 7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense. Materiality...
View Full Document
This note was uploaded on 03/30/2010 for the course COB ACCY 202 taught by Professor Shapland during the Spring '10 term at University of Illinois, Urbana Champaign.
- Spring '10