Q2. (a) Lim started a furniture business a year ago. He engaged an accounting firm to prepare the audited financial statements for Lohenzo Furniture. The accounting firm discovered that some of the recorded transactions did not comply with the accounting principles. As of the closing date, 31 December 2020, stocks of Lohenzo Furniture were worth RM1.1 million. However, 20% of the stocks were outdated and the value had dropped by nearly 50%. He continued keeping these stocks to reflect a higher value of the assets and did not record the expected losses in the financial report. Lim also took out a bedroom set for his niece as a present for her recent birthday. This transaction was recorded as entertainment expenses for the company. The accounts assistant bought a bunch of pens worth RM10 for office use and recorded this transaction as one of the company's assets. When the company's staff took a pen to use, the accounts assistant recorded the pen as an expense and repeated the same entries each time any staff took a pen. On the other hand, Lim offered an instalment plan to his customers to increase sales. The instalment plan starts from 6 months to 24 months. He recorded the sales based on when he received payment from his customers. Based on the scenario above, state and explain FOUR (4) accounting concepts that Lim should adopt to ensure compliance. (16 marks)