Matt bought a delivery van for 14,000 on 1 July 2016. It is expected to have a useful life of 4 years and a value at the end of that time of 3,000. If depreciation is to be provided at 30% on the reducing-balance basis, the depreciation charge for the year ended 30 June 2017 will be:

a)2,940.

b)1,260.

c)4,200.

d)2,310.

Which of the following interpretations of the prudence concept isnottrue:

a)The prudence concept requires preparers of accounts to anticipate all income.

b)The prudence concept requires preparers of accounts to anticipate all costs.

c)The prudence concept requires preparers of accounts to take a cautious approach to accounts preparation.

d)The prudence concept underpins the need for businesses to create a provision for doubtful debts.