Accounting Concepts

Read the following information and identify the accounting concepts that are violated. State the correct
way of recording them

1. An office equipment was bought for $10 000. However, the true value was $12 000 and this was
recorded.
2. Mark Williams bought a computer for his home. This transaction was recorded in the business
book.
3. The business used the first in first out method to values stock. However, the proprietor decided
to change to the last in first out method.
4. The business has $20,000 in accounts receivable. It is likely that 5% of the amount owing will not
be received by the business. However, the proprietor failed to create a provision for bad debt
and maintained the amount owing for $20 000.
5. The total electricity expense was $10,000. However, the business only recorded the amount of
$6000 paid as expense for the period and refuses to include the amount outstanding