While preparing the financial statements of a business, a proper guidance is needed. The principles of accounting marks the appropriate start in doing so. Inorder to form sound and informed decisions, a proper financial assistance should be charted. Consistency is a key factor in accounting because there is often a tendency among people to use financial reports to compare companies and their performance. The various principles of accounting are accrual principle, conservatism principle, consistency principle, cost principle, economic entity principle, revenue recognition principle, matching principle, objectivity principle and so on. Thus these principles meet the requirements of proper accounting.

Bridgit Peter

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