GAAP's

Business Entity Concept

The principle that the accounting for a business must be kept separate from the personal affairs of its owner.

Continuing Concern Concept

The assumption that a business will continue to operate indefinitely unless there is clear evidence to the contrary.

Principle of Conservatism

The principle that requires fair and reasonable accounting practices to avoid overstating or understating a business's affairs.

Objectivity Principle

The principle that accounting records must be based on objective evidence that yields consistent values to any observer.

Time Period Concept

The concept that accounting takes place over specific periods known as fiscal periods.

Revenue Recognition Principle

The principle that dictates revenue is recognized at the time a transaction is completed.

Matching Principle

The principle that requires recording each expense related to revenue in the same accounting period in which the revenue was earned.

Cost Principle

The principle that states the recorded value of an asset remains unchanged until a new transaction provides objective evidence.

Consistency Principle

The principle requiring accountants to use the same methods across periods and explain any changes clearly.

Materiality Principle

The principle allowing some deviations from GAAP if they do not significantly influence the financial statements.

Full Disclosure Principle

The principle that mandates all information affecting the understanding of financial statements be disclosed.