What are the golden rules of accounting?

Question

Accepted Answer

The golden rules of accounting are basic principles that guide the recording of financial transactions.

The first golden rule is the rule of debit and credit.
The second golden rule is the rule of consistency.
The third golden rule is the rule of conservatism.
The fourth golden rule is the rule of materiality.
The fifth golden rule is the rule of objectivity.
For example, the rule of debit and credit states that for every debit entry, there must be a corresponding credit entry.
The rule of consistency states that accounting methods and procedures should remain consistent from one period to another.
The rule of conservatism states that when in doubt, accountants should choose the option that is least likely to overstate assets or income.
The rule of materiality states that accountants should only record transactions that are significant enough to affect the financial statements.
The rule of objectivity states that financial transactions should be recorded based on objective evidence, such as receipts or invoices.

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