Identify and state the relevant accounting concepts given, which is suitable for each question below:-
- Money Measurement Concept
- Historical Cost Concept
- Consistency Concept
- Entity Concept
- Going Concern Concept
- ABC Express Sdn Bhd has traditionally depreciated its furniture and equipment using the straight line method. This year it has adopted the reducing balance method without advising its financial statement shareholders of this change. As a result it is violating the _________ concept.
- Last year, a manufacturing company purchased a 3 storey shophouses at a cost of RM1 million. This year it is valued at RM3.5 million. However, the company continues to record in books, the value of the shophouses at RM1 million. This is in line with the _________ concept.
- A food catering business has in recent years, experienced financial problems in its business. It has in the stage of bankruptcy. However, it has recorded all the accounts as thought it is still in good financial position. This is not following the __________ concept.
- TZZ Bhd is a registered public company dealing with housing development. The company took a bank loan worth RM5 million for Ambank repayable within 10 years. However, after a period of 12 years this company failed to repay its loan. The bank decides to confiscate all the personal properties of the shareholders. This is against the ____________ concept.
- A supermarket owner sells all kinds of groceries for its customers. It records all the purchases and its sales in the accounting books in terms of RM. This is in accordance with the _______ concept.
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