Identify the accounting principle or assumption that best explains each situation.

Cruz Consulting performs services for a client. Cruz records revenue this period even though the client is not billed until next perioc

Stark Company's accounting system maintains the equipment account as if the business will continue operating and not close.

Mike Derr owns both Sailing Passions and Dockside Digs. In preparing financial statements for Dockside Digs, Mike makes sure tha the expense transactions of Sailing Passions are kept separate from Dockside Digs's transactions and financial statements.