What are the Accounting Principles?
Accounting principles are the rules and guidelines that companies and other agencies must abide by when reposting their financial data and results. These principles and rules make it a bit easier to standardize financial data by setting the standards and rules that Accountants must use.
The main purpose of Accounting principles is to establish the framework for how financial Accounting is recorded and reported on financial statements to be reliable for decision makers.
It’s important to have a basic understanding of these main Accounting principles as you learn Accounting.
Generally accepted Accounting principles are important because they set the rules for financial reporting and bookkeeping as well. These rules or guides are often called the GAAPs framework and they maintain consistency in financial reporting from company to company across all industries.
And here are some of the topics that you will learn along the course:
- The Accrual principle
- The Conservatism principle
- The Consistency principle
- The historic cost principle
- The full disclosure principle
- The going concern principle
- The matching principle
- The monetary unit principle
- The reliability principle
- The revenue recognition principle
- The time period principle
- Creative Accounting
- Corporate Social Responsibility CSR
- Forensic Accounting Knowledge
- The Sarbanes Oxley Act of 2002
- Consequences of violation of The Accounting principles – Enron scandal case
- Consequences of violation of The Accounting principles – WorldCom case