Accounting Principles}

Three statements are given below.

a. Quagmire Company recognizes revenue when the goods are delivered to a customer, even though cash will not be collected from the customer for 30 days.

b. Inventory, which was recently damaged by a flood, was considered a significant amount and will impact decision makers' decision about investing in this company.

c. Land, located in a desirable location, is reported at the original acquisition price, even though its value has increased by over \(100 \%\) since it was purchased.

\section*{Required:}

Give the accounting principle that is most applicable to each of the statements.

\section*{Cornerstone Exercise