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State the accounting principle or assumption that is most applicable in the following situations: 1.    A company prepares consolidated financial statements for a subsidiary that it owns. 2.    The decision to remove an asset from the balance sheet

- October 10, 2022 - Edwin Tunner

State the accounting principle or assumption that is most applicable in the following situations:

1.    A company prepares consolidated financial statements for a subsidiary that it owns.

2.    The decision to remove an asset from the balance sheet

3.    A large sale on account is not recognized as revenue because collectability is an issue.

4.    Disclosure of the liability from a lawsuit in the financial statements

5.    Preparation of monthly financial statements

6.    Using the Canadian dollar in financial statements

7.    An energy company includes detailed information about its reserves in its notes to the financial statements.

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