Hi can you just list the appropriate accounting concept that relates to each of the following scenarios? Such as (the Conservatism concept, Consistency concept etc).

1. A case of food poisoning occurred in your restaurant. The firm is being sued by a number of clients who were affected. The anticipated cost from this lawsuit is not yet ascertained although a judgment again the firm seems certain and will significantly erode the firm's liquidity and financial position in the short run.. Should the firm make a disclosure of this situation at the end of the year? How may this be done ?

2. The firm has traditionally depreciated its fixed assets using the straight line method. However this year the firm is contemplating a change to the reducing balance method as this would allow for the reporting of a greater net income. What would be your initial response to this situation? Is there any justification to support this proposition?

3. The company has two motor vehicles which were acquired on hire purchase. These have not yet been fully paid for, and the supplier still has a lien on them. However the vehicles are in use in the business. Should these motor vehicles be shown among the assets?. In line with the answer, what is an appropriate definition of the term asset'?

4. Several minor expenses have been paid for, and classified under a common heading called miscellaneous expenses, as they were each of small amounts. Should the firm maintain a register of the receipts or proof of payment for these transactions? Explain some of the long term benefits of doing do? .

5. While carrying out its stock taking at the end of the year, a jewelry store encountered a few reams of paper and boxes pens among its cache of jewelry and watches. Should these items of stationery be included in the closing stock or should they be written off as office expense for the period?

6. The construction manager for a housing project is upset about that fact that his work is being interrupted so often by the accounting department, //as he is being asked to provide updates on work in progress. He argues that most jobs are being done on long term contracts, and the production department usually submit a completion report at the end of each job, often times up to two year. Does the construction manager have a valid point?

7. The marketing manager was elated that several clients have either enquired about our service or have promised to place substantial orders, following an advertising and promotional blitz. He is of the view that business is now very profitable based on the potentials from these clients. Is there a basis to believe that business is going as good as the marketing manager assumes?