Response to the following problem:
Identify which accounting principle or assumption best describes each of the following practices:
A. If $51,000 cash is paid to buy land, the land is reported on the buyer's balance sheet at $51,000.
Business entity assumption
Objectivity principle
Revenue recognition principle
Monetary unit principle
Cost principle or historical cost
Going-concern principle
B. Alissa Kees owns both Sailing Passions and Dockside Supplies. In preparing financial statements for Dockside Supplies, Kees makes sure that the expense transactions of Sailing Passions are kept separate from Dockside's transactions and financial statements.
Revenue recognition principle
Cost principle or historical cost
Monetary unit principle
Business entity assumption
Objectivity principle
Going-concern principle
C. In December 2010, Ace 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 2011. Ace should record the revenue from the customer order in March 2011, not in December 2010.
Cost principle or historical cost
Monetary unit principle
Going-concern principle
Objectivity principle
Revenue recognition principle
Business entity assumption.