What are the Basic Accounting Principles? Basic Generally Accepted Accounting Principles (GAAP).
Accounting Principles There are general principles that are used in accounting to govern the accounting process. Accounting principles provide a framework for the accountants on which they make their decisions. Generally Accepted Accounting Principles (GAAP) provides the foundation to accounting professionals about rules and regulations to adapt while creating financial statements. These Accounting principles are explained under. Economic Entity Concept: This Accounting principle states that the owner and business are two separate entities and deals with their own names. The liability...