This principle argues that the accounting method that does not lead to overstatement or overestimation of assets/income is preferable.

This principle postulates that the same accounting methods every accounting period.

This principle declares that all relevant and significant information should be included in financial statements.

This principle states that any cost related to the revenue earned must be recorded in the same accounting period.

This principle notes that any accounts should be based on facts and not personal opinions or feelings.

This principle declares that companies should record the original purchase price of assets, not the current selling price.

This principle asserts that tiny and unimportant amounts do not need to be shown in financial statements/reporting.

This assumption affirms that all financial transactions should be conducted in a single monetary unit or currency.

This assumption suggests that a business needs to be separated from its owners, creditors, and managers, and their assets.

This assumption states that the economic life of the business can be divided into time periods such as the financial year or a quarter of it.

This assumption mentions that a business will continue into the future regardless of the value of the assets.