I am having difficulties understanding these questions and how I should answer them.

Q1: A hotel shows office supplies such as stationery on its balance sheet as a

$500 asset, even though to any other hotel these supplies might have a value

only as scrap paper. Which accounting principle or concept justifies this?

Q2: Briefly discuss four types of adjustments that may be necessary to convert

cost of salesfood, to net cost of salesfood.

Q3: Why can a hotel, motel, or restaurant usually operate with a current ratio

considerably lower than other types of businesses, such as manufacturing

companies?

Q4: List and briefly discuss the four bases on which a ratio can be compared?