GAAPS
Business Entity Concept
The accounting for a business must be kept separate from the personal affairs of it's owner(s), or from any other business.
Cost Principle
Assets must be recorded at their cost price.This is the figure that appears on the source document for the transaction.
Liabilities are to be listed on the balance sheet in their order of payment.
Maturity Date Rule
Accountants must follow GAAPs except when to do so would be expensive or difficult and not following GAAPs would not lead to significant misstatement or results.
Materialize Principe
Accounting for a business should be fair and reasonable. Attempts should be made to neither overstate nor understate the affairs of the business or the results of operation.
The Principle of Conservation
The Revenue Recognition Convention
Accounting takes place over specific time periods known as fiscal periods. Fiscal periods are of equal length, and are used when measuring the financial progress of a business.
The Time Period Concept