Explain Accounting Principles?

Accounting principles are basic rules and guidelines used for preparing financial statements consistently and accurately.

Major Accounting Principles

Principle:-

Meaning

1.Going Concern

(Business will continue in future)

2.Consistency

(Same accounting methods every year)

3.Accrual

(Record income/expenses when earned/incurred)

4.Matching

(Match expenses with related revenue)

5.Prudence

(Avoid overstating profit/assets)

6.Cost Principle

(Record assets at original cost)

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