Identify the concept or principle, if any, which is violated in each of the following situations. Choose comparability, prudence, cost, entity and matching. (3 marks each)

Requirement

a. The inventory of an Electrical and Computer store has a current market value of $155 000. The store reports the inventory at its cost $230 000.

b. The owner of a restaurant uses the restaurants bank account to pay his household expenses as doesnt operate any other bank account.

c. A manufacturer changed from the straight-line depreciated method to the reducing-balance method but did not think it worthwhile mentioning this change in the financial statements.

d. A farming business purchased 500 hectares of plantation land at $1 800 per hectare in 2014. In its recent balance sheet it reported the land at its current market value of $2 300 per hectare.

e. A small steel fabricator records depreciation during years when profits are high but does not record depreciation when profits are low.