Complete the following work sheet:
(i) If a firm believes that some of its debtors may default?. It should act on this by making sure that all possible losses are recorded in the books. This is an example of the ________ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the _______ concept.
(iii) Everything a firm owns, it also owns out to somebody. This’ coincidence is explained __________ by the concept.
(iv) The __________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the _________.
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the __________
(vii) The management of a firm is remarkably incompetent, but the firms, accountants cannot take this into account while preparing book of accounts because of concept ____________.
