Accounting Principles

2. Anticipate losses and expenses first rather than anticipating profits and incomes
4. Cost of the asset on which it has been acquired has to be mentioned in the books of account
5. Time is divided into smaller units to facilitate keeping of books of account
6. Accounting information should be verifiable; transaction must be recorded on the basis of evidence
12. All transactions irrespective of involvement of cash need to be mentioned in the books of account
13. If revenue has been generated, it must be recorded in the books of account, whether received or not
14. Business and owner are two separate existing entities in the society

1. Business will continue until unforseen period of time
3. A transaction is said to be a transaction if it can be measured in terms of money
7. A transaction is said to be a transaction when there is involvement of material
8. Once a method has been opted, one should stick with it be consistent moving forward
9. Out of one transaction, at least two accounts get impacted
10. A business entity should disclose a clear and just picture of the business firm
11. The expenses must be matched/recorded in the same period of time as the revenues they are related with