Identify which general accounting principle best describes each of the following practices:

a. Marilyn Choi owns both Sailing Passions and Dockside Supplies. In preparing financial statements for Dockside Supplies, Choi makes sure that the expense transactions of Sailing Passions are kept separate from Dockside’s statements.

b. In December 2004, A-Plus Floors received a customer’s order and cash prepayment to install carpet in a new house that would not be ready for installation until March 2005. A-Plus Floors should record the revenue from the customer order in March 2005, not in December 2004.

c. If $30,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $30,000. L01