What are the basic accounting principles?

@millie 

1. Entity principle: Requires that the business entity is separate from the personal affairs of its owner.
2. Going concern principle: Assumes that a business will continue to operate indefinitely unless there is evidence to the contrary.
3. Monetary unit principle: States that all financial transactions must be recorded in a common unit of currency, such as Dollars or Euros.
4. Time period principle: Divides the business's activities into specific, defined periods of time for easier analysis and evaluation.
5. Historical cost principle: Requires that assets and liabilities are recorded at their original purchase cost, rather than their current market value.
6. Matching principle: Requires that expenses be recorded in the same accounting period as the revenues that they helped generate.
7. Revenue recognition principle: Income is recognized when the delivery of goods or completion of services has occurred.
8. Materiality principle: States that only information of significant importance should be included in financial statements.
9. Consistency principle: Requires that accounting methods and principles be applied consistently from one period to another.
10. Conservatism principle: Dictates that when faced with uncertainty, a company should choose the accounting method that is least likely to overstate assets or income.