In the 1950s, the soviet union invested heavily in capital, increasing its capital stock. however, the soviet union’s growth rate lagged behind the growth rate in the united states. slower growth in the soviet union contributed to the end of the cold war. the soviet union tried to match military spending with the u. s., but, since the soviet union’s economy was not growing as fast, military spending represented a significantly larger part of the soviet union’s aggregate expenditure than in the u. s. the result was that there was less capital available for investment in the soviet union, and grocery stores either had empty shelves or long lines of people waiting to buy food. explain why the soviet union’s growth rate was lower than the u. s.’s growth rate during much of the cold war period (say, from 1945-1989).

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.