Chapter 6, Problem 1RQ

To determine

Principles of Accounting: Accounting principles are general rules and guidelines which a business entity follows for recording its financial transactions. Accounting principles include basic assumptions, framework and customs followed while preparing the books of accounts.

Few Examples of the principles of accounting are the principle of accrual, economic entity, going concern, monetary unit principle, the principle of revenue recognition, time period principle, conservatism, materiality, full disclosure, consistency and many others.

The Accounting principle which states that businesses should use the same accounting methods and procedures from period to period.