The process of making accounting estimates is free from bias.

The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period.

A source document is prepared for each transaction.

Financial information is recorded and reported separately from the owner's personal financial information.

Changes in financial information are reported for a specific period of time in the form of a financial statement.

Business transactions are reported in numbers that have common values -- that is, using a common unit of measurement.

Revenue is recorded at the time goods or services are sold.

Financial statements are prepared with the expectation that a business will remain in operation indefinitely.

The actual amount paid for merchandise or other items bought is recorded.

Financial statements contain all information necessary to understand a business's financial condition.

Business activities creating dollar amounts large enough to affect business decisions should be recorded and reported as separate items in the accounting records and financial statements.