The following is a list of problems which an accountant may well meet in practice. (a) The

Question:

The following is a list of problems which an accountant may well meet in practice.
(a) The transfer fee of a footballer.
(b) Goods are sold in one period but the cash for them is received in a later period.
(c) The proprietor's personal dwelling house has been used as security for a loan which the bank has granted to the company.
(d) What profit to take in the third year of a five-year construction contract.
(e) Small of stationery held at the accounting year end.
(f) Expenditure incurred in working on the improvement of a new drug.

Required:
(1) Which accounting rule would the accountant most probably adopt in dealing with each of the above problems?
(2) State the reasons for your choice.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...