2. What accounting concept is applied for not reporting fixed assets at liquidation value? Do not use the historical cost principle.

3. What accounting principle is applied when all relevant financial information is reported?

4. What accounting concept is applied when accounting standards are followed for all items of significant amount?

5. A company expenses all office supplies that are purchased. The balance of Supplies Expense at the end of the year was $4,000. It was discovered that there were $850 of office supplies on hand at the end of the year. Prepare the adjusting journal entry at the end of the year.