Explain accounting concept

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Which accounting concept is used in each of the following accounting treatments?

Explain.

a) A motor broke down in December 2007. the repair bill for it was not paid until 2008 yet it has been treated as a 2007 expense.

b) A customer saw a carpet in 2007 and said he might well buy it. he telephoned in 2008 and asked for the carpet to be delivered .the item was not treated as a sale in 2007 but was treated as a sale in 2008.

c) The final day of the financial year saw the passing of a law that would render trading in our sort of goods illegal, and the business will have to close. the accountant says that our stock figure cannot be shown at cost in the balance sheet.

d) We have been told that we cannot show our asset of motor cars at cost in one year and at cost plus the price increase the next year when the manufacturer increases prices of all cars, which also includes our unsold stock.

e) We have shown all items of machinery costing less than $100 as machinery operating expenses.

Reference no: EM133234339

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