The following is a list of problems which an accountant may well meet in practice. Which accounting rule would the accountant most probably adopt in dealing with each of the problems? State the reasons for your choice. 

(a) Electricity consumed in Period 1 and paid for in Period 2. 

(b) Equipment originally purchased for £20,000 which would now cost £30,000. 

(c) The company’s good industrial relations record. 

(d) A five-year construction contract. 

(e) A customer with a poor credit record might go bankrupt owing the company £5000. 

(f) The company’s vehicles, which would only have a small scrap value if the company goes into liquidation.