Budgets & Financial Plans
Provide the 10 main accounting principles and guidelines and describe each.
The ten accounting principles are described on the Accounting Coach website and are as follows:
Economic Entity Assumption -- This is the idea that a sole proprietor will keep personal and business transaction data and funds separate (Accounting Coach, 2015).
Monetary Unit Assumption -- This is the idea that all transactions recorded will be in U.S. dollars and that only transactions that CAN be reported as such will be done (Accounting Coach, 2015).
Time Period Assumption -- This is the principle that says that economic data will be defined based on specific time horizons such as a number of weeks, months, quarters and/or years (Accounting Coach, 2015).
Cost Principle -- This is the idea that there is a cash or cash equivalent that can and should be assigned to a given activity. For example, a person earning $8 an hour would cost the company $32 if they work four hours (Accounting Coach, 2015).
5) Full Disclosure Principle -- This is the idea that any information important and mundane to what an investor wants to know should be fully included in financial statements rather than being changed or omitted (Accounting...
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