What are the principals of Accounting?

Question

Accepted Answer

The principles of accounting are the basic concepts and guidelines for financial reporting.

Principle of consistency - using the same accounting methods and procedures from one period to another
Principle of conservatism - recognizing expenses and liabilities as soon as possible, but delaying the recognition of revenues and assets
Principle of materiality - only recording information that is significant or material to the financial statements
Principle of relevance - ensuring that the information recorded is relevant to the decision-making needs of users of the financial statements
Principle of objectivity - ensuring that the information recorded is based on verifiable evidence and not influenced by personal bias or opinion

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