Archive | Accounting Principles

Selection of Accounting Principles: 4 Considerations

The following points highlight the four main considerations which guide the selection of accounting principles. The considerations are: 1. Accurate Presentation 2. Conservatism 3. Profit Maximization 4. Income Smoothing. Consideration # 1. Accurate Presentation: One of the criteria for assessing the usefulness of accounting information is accuracy in presentation of the underlying events and transactions. […]

Accounting Principles: 8 Important Principles of Accounting

The following points highlight the eight important principles of accounting. The principles are: 1. Cost Principle 2. Dual-Aspect Principle 3. Accrual Principle 4. Conservatism Principle 5. Matching Principle 6. Consistency Principle 7. Materiality Principle 8. Full-Disclosure Principle. Accounting Principle # 1. Cost Principle: The cost principle requires that assets be recorded at their exchange price, […]

Top 14 Principles of Accounting – Discussed!

Read this article to learn about the principles of accounting! 1. Accounting Entity (Separate Entity Concept): According to this principle, business is treated as an entity which is separate and distinct from its owners. It is further assumed that business has its own identity distinct from the owners, creditors, debtors, managers and others. In a […]

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