Assumptions and Principles}

Four common accounting practices are listed below.

a. A customer pays \(\$ 20\) to mail a package on December 30. The delivery company recognizes revenue when the package is delivered in January.

b. Jim Trotter owns C\&S Heating Company. In preparing the financial statements, Trotter makes sure that the purchase of a new truck for personal use is not included in C\&S's financial statements.

c. Moseley Inc. recorded land at its purchase price of \(\$ 50,000\). In future periods, the land is reflected in the financial statements at \(\$ 50,000\).

d. Mueller Inc. prepares quarterly and annual financial statements.

\section*{Required:}

Identify the accounting principle or assumption that best describes each practice.

\section*{OBJECTIVE 2 Brief Exercise