What are all the accounting principles?

Question

Accepted Answer

Accounting principles are the guidelines and rules that companies must follow when preparing financial statements.

The principles include: accrual principle, consistency principle, going concern principle, matching principle, materiality principle, monetary unit principle, objectivity principle, prudence principle, and relevance principle.
Accrual principle states that revenue and expenses should be recognized when earned or incurred, not when cash is received or paid.
Consistency principle requires that companies use the same accounting methods and procedures from one period to the next.
Going concern principle assumes that a company will continue to operate indefinitely.
Matching principle requires that expenses be matched with the revenue they helped generate.
Materiality principle states that only significant information should be reported in financial statements.
Monetary unit principle requires that all transactions be recorded in a common currency.
Objectivity principle requires that financial statements be based on verifiable evidence.
Prudence principle requires that companies be conservative in their accounting estimates and not overstate assets or income.
Relevance principle requires that financial statements provide information that is useful to investors and creditors.

Accepted Answer

Accounting principles are the rules and guidelines that companies and other bodies must follow when reporting financial data. These rules make it easier to examine financial data by standardizing the terms and methods that accountants must use

What are all the accounting principles?

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