SI Session 1

ABC Co. purchased a building  and recorded it at its sale price on the balance sheet

ABC Co. was being sued by a customer. It was likely they would lose the lawsuit. They needed to disclose to the public the likely amount of the settlement on the balance sheet as a liability.

ABC Co. adjusted the value of an investment from the purchase price to the current market price

ABC Co. breaks their financial statements up by quarter

ABC Co. recorded wages expense for the work employees performed this year even though they will not pay the wages until next year.

ABC Co. records revenue after it completed its duties although the customer has not paid off the balance yet

ABC Co. has used the same depreciation method for 10 years

ABC Co.’s owner is very important to the company. He just received news that he has a terminal illness. The appointment of a new CEO could negatively impact ABC Co.’s financial position. As a result, ABC Co. decided to release that information to the public.

ABC Co. reviews their financial statements multiple times before finalizing its financial statements. They do this to reduce the likelihood of any errors.

ABC Co. and XYZ Co. use similar accounting principles, allowing users to find similarities and differences between the two companies