Identify the basic assumption or broad accounting principle that was

violated in each of the following situations.

1. Pastel Paint Company purchased land two years ago at a price of

$250,000. Because the value of the land has appreciated to $400,000,

the company has valued the land at $400,000 in its most recent balance

sheet.

2. Atwell Corporation has not prepared financial statements for external

users for over three years.

3. The Klingon Company sells farm machinery. Revenue from a large

order of machinery from a new buyer was recorded the day the order

was received.

4. Don Smith is the sole owner of a company called Hardware City. The

company recently paid a $150 utility bill for Smith's personal residence

and recorded a $150 expense.

5. Golden Book Company purchased a large printing machine for

$1,000,000 (a material amount) and recorded the purchase as an

expense.

6. Ace Appliance Company is involved in a major lawsuit involving

injuries sustained by some of its employees in the manufacturing plant.

The company is being sued for $2,000,000, a material amount, and is

not insured. The suit was not disclosed in the most recent financial

statements because no settlement had been reached