Select the accounting concept to be used in the following circumstances:

(a) Jim feels that the old ‘Olivetti’ typewriter valued at cost £47 on the balance sheet could fetch £350 at auction.

■ Entity
■ Objectivity
■ Realisation
■ Prudence

(b) A new ‘Sellotape’ dispenser has been purchased. It will be used for at least five years. The purchase price of £8.99 has been included in stationery.

■ Accruals
■ Entity
■ Going concern
■ Materiality

(c) It has been estimated that the factory cat has saved the business hundreds of pounds by catching mice which previously had caused much damage. The owner of the business wishes to put the cat on the balance sheet at a value of £200, despite the fact that it was purchased for only £3.50.

■ Accruals
■ Objectivity
■ Materiality
■ Prudence

(d) Tom is to put the family holiday on the profit and loss account because he needs the relaxation to help him cope with the rigours of business.

■ Accruals
■ Entity
■ Going concern
■ Prudence

(e) Frank believes that about 2% of debts outstanding at the year-end are doubtful. He intends to create a provision for doubtful debts of 2%.

■ Accruals
■ Entity
■ Going concern
■ Prudence