Good afternoon,

I would like to know if you can help me to understand these two problems. I have the answers however I don't understand them.

1. The company used the Rs.45 million to pay dividend, Rs.10 million to buy assets and Rs. 10 million to repay loancorrect
2. The company has used the entire profit of Rs. 20 million to buy fixed assets
3. The company has used the entire profit of Rs. 10 million to pay off debt
4. The company has used the profit to buy fixed assets (Rs. 20 million), pay off debt (Rs. 10 million) and balance Rs. 5 million to pay dividend.

A businessman purchased goods for Rs. 25,00,000 and sold 80% of the goods during the financial year ended 31st March, 2016. The market value of the remaining goods were Rs. 4,00,000. He valued the closing inventory at cost. He violated the concept of ______________.

1. Money measurement
2. Conservatismcorrect
3. Cost
4. Periodicity

thank you