Grossman company owns buildings that are worth substantially

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The following situations involve accounting principles and assumptions.

1. Grossman Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Grossman reports the buildings at market value in its accounting reports.

2. Jones Company includes in its accounting records only transaction data that can be expressed in terms of money.

3. Caleb Borke, owner of Caleb's Cantina, records his personal living costs as expenses of the Cantina.

Instructions

For each of the three situations, say if the accounting method used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated. 

Reference no: EM131136361

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