Gernal rules of accounting

Question

Accepted Answer

General rules of accounting include the accounting equation, double-entry accounting, and the matching principle.

The accounting equation states that assets must equal liabilities plus equity.
Double-entry accounting requires every transaction to have equal debits and credits.
The matching principle requires expenses to be recorded in the same period as the revenue they generate.
Other rules include the consistency principle, the conservatism principle, and the materiality principle.
Consistency principle requires that accounting methods remain consistent from one period to the next.
Conservatism principle requires that accountants err on the side of caution when making estimates.
Materiality principle requires that only significant information be reported in financial statements.

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