Question 2 (14 marks) Part I: Write short notes on the following: (2 marks each) i. Outstanding deposit ii. Prudence concept iii. Accumulated depreciation

Part II: Stock valuation (8 marks) As a manager of a business, you have to choose a method for stock valuation. The business you work for uses the perpetual inventory stock system. On 31 May 2016, there were 350 units at N$18 per unit in stock. The inventory movement for June and July 2016 are shown below. Dates Received Issued Unit purchase price June 1 300 20 12 800 25 24 900 30 150 July 6 600 22 15 300 31 500 You are required to: a) Calculate the value of closing inventory, using the average weighted cost method of inventory valuation