Also known as the neutrality concept.

What is the difference between 'Neutrality' and 'Prudence'? Please explain/provide an example for each.

You recently began a job as an accounting intern at Backyard Adventures. Your first task was to help prepare the cash budget for February and March.​ Unfortunately, the computer with the budget file​ crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the​ budget, you may have just enough information to reconstruct the budget. Backyard Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street​ Bank, where the current interest rate is 6%. Backyard Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available. Requirements: Complete the following cash budget. ​(For amounts with a​ $0 balance, make sure to enter​ "0" in the appropriate input field. Enter cash deficiencies with a minus sign or parentheses. Enter the net total effects of…

Define the term spoilage.