John runs a retail business, but he isnt familiar with the various accounting concepts. He is therefore seeking your advice as to whether he dealt with the following situations correctly:

a. John was so pleased with the motivation of his staff that he decided to include this on his financial statements.

b. A sale was made in the current financial year, but payment would not be received until the following year. John decided to record the sale as occurring in the following year since thats when he would receive the cash.

c. John purchased some items on Hire purchase but decided not to include them on his financial statements since he hasnt finished paying as yet.

d. A potential customer enquired about an item and then later told John that he was seriously considering purchases in the item next month. John was so delighted to hear this and decided to record the sale immediately.

You are required to Assist John by identifying an accounting concept that is applicable to each scenario and explain to him whether he had adhered to that concept or not.