V. Complete the following statements and explain your choice

1. The petrol in the tank of the delivery van, worth $8.50, has not been recorded in the business balance. This is the example of using concept of ______.
2. The owner is using 10% depreciation on all fixed assets in the business because fixed assets have always been depreciated using this percentage. This is the example of the concept of ______.
3. A customer is expected to place a substantial order worth $8,800 next month. This is the example of the concept of ______.
4. Jim feels that the old “Olivetti” typewriter valued at cost $47 on the balance sheet could fetch $350 at auction. This is the example of the concept of ______.
5. Tom is to put the family holiday on the profit and loss account because he needs the relaxation to help him cope with the rigours of business. This is the example of the concept of ______.
6. Stocks being valued at the lower of cost or net realizable value is an example of using the ______ concept.

VI Answer the following questions.

1. When changes in financial information are reported for a specific period of time in the form of financial statements, which accounting concept is being applied?

2. When financial statements contain all information necessary for a reader to understand a business’ financial condition, which accounting concept is being applied?

3. When a business’ financial information is recorded and reported separately from the owner’s personal financial information, which accounting concept is being applied?

4. When the same accounting concepts are applied in the same way in each accounting period, which accounting concept is being applied?

5. When financial statements are prepared with the expectation that a business will remain in operation indefinitely, which accounting concept is being applied?

6. When each transaction is described by a business document that proves the transaction did occur, which accounting concept is being applied?

7. When the actual amount paid or received is recorded in accounting records, which accounting concept is being applied?

8. When revenue and expenses are recorded in the same accounting period, which accounting concept is being applied?

9. When revenue is recorded at the time goods or services are sold, which accounting concept is being applied?

10. When all transactions are recorded in dollars and cents, which accounting concept is being applied?