Question

What do you mean by accounting principles???​

Answer 1

Generally Accepted Accounting Principles (GAAP) refers to the rules or guidelines adopted for recording and reporting of business transactions, in order to bring uniformity and consistency in the preparation and the presentation of financial statements.

Explanation:

The matching principle requires that businesses use the accrual basis of accounting and match business income to business expenses in a given time period. For example, the commissions for sales should be recorded in the same accounting period that sales income was made (and not when they were paid).

Answer 2

Answer:

Accounting principles are the rules and guidelines that companies must follow when reporting financial data. The Financial Accounting Standards Board (FASB) issues a standardized set of accounting principles in the U.S. referred to as generally accepted accounting principles (GAAP).1 Some of the most fundamental accounting principles include the following:

Accrual principle

Conservatism principle

Consistency principle

Cost principle

Economic entity principle

Full disclosure principle

Going concern principle

Matching principle

Materiality principle

Monetary unit principle

Reliability principle

Revenue recognition principle

Time period principle