Identify which accounting principle or assumption best describes each of the following practices:
a. In December 2012, Chavez Landscaping received a customer’s order and cash prepayment to install sod at a new house that would not be ready for installation until March 2013. Chavez should record the revenue from the customer order in March 2013, not in December 2012.
b. If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.
c. Jo Keene owns both Sailing Passions and Dockside Supplies. In preparing financial statements for Dockside Supplies, Keene makes sure that the expense transactions of Sailing Passions are kept separate from Dockside’s transactions and financial statements.

  • CreatedFebruary 13, 2014
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