Accounting Principles and Conventions

Accounting principles are sometimes rules and conventions that have been adopted as a general guide to action by the accounting profession.

These principles are formed in such a manner that the practical details of accounting may differ greatly from one company to the next. In order to accept these principles and conventions, an accounting principle must be useful in coping with a practical recording problem, it must be reasonable and objective, that is, it must provide a similar answer in the hands of qualified accounting practitioners; and finally, it must be feasible. That is, it should not be expensive to apply.

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