Identify which accounting principle or assumption best describes each of the following practices: a. In December 2012,

Question:

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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...