this is accounting subject ( principle of auditing )

please show me the steps of the solutions.

1) conservation concept emphasizes that profit should never be overstated or anticipated.

True or false and why?

2) evaluation of the closing inventory at its cost or market value whichever is lower is an application of the "cost concept".

True or false and why?

3) explain - briefly the following terms:

business entity - going concern - accruals - materiality - conservatism