This document summarizes 8 accounting principles: 1. Cost principle - Assets are recorded at their cost at the time of acquisition. 2. Objective principle - Assets valuation is factual and can be verified independently. 3. Going concern principle - Transactions are recorded with the assumption the business will continue operating. 4. Full disclosure principle - All information affecting the financial statements must be disclosed. 5. Matching principle - Revenue and costs are matched in the appropriate accounting period. 6. Realization principle - Accounting records past transactions, it does not anticipate future events. 7. Business entity principle - The business is treated as separate from its owners. 8. Stable dollar assumption - The

1. 1. COST PRINCIPAL.
2. OBJECTIVE PRINCIPAL.
3. GOING CONCERN PRINCIPAL.
4. PRINCIPAL OF FULL DISCLUSSURE.
5. MACHING PRINCIPAL.
6. REALIZATION PRINCIPAL.
7. BUSINESS ENTITY PRINCIPAL.
8. STABLE DOLLAR ASSUMPTION.

2. COST PRINCIPLE
The historical cost basis
principle is the principle that
requires assets to be recorded at
their cost at the time they are
acquired.

3. OBJECTIVE PRINCIPAL
Accounting use the term objective
to desride assets valuation that are
factual and can be verified by
independent export.

4. GOING CONCERN PRINCIPAL
It is persuaded that the business
will exists for a long time and
transactions are recorded from this
point of view.

5. PRINCIPAL OF FULL DISCLUSSURE
The full disclosure principle is the
requirement that all information
that might affect the user’s
interpretation of financial
statements be disclosed in the
statements or in the footnotes.

6. MACHING PRINCIPAL
The matching principle is the
concept that revenue and costs
incurred in earning that revenue
should be matched in the
appropriate accounting period.

7. REALIZATION PRINCIPAL
Accounting is a historical record of
transactions. It records what has happened. It
does not anticipate events. This is of great
important in preventing business firms from
inflating their profits by recording sales and
income that are likely to accrue.

8. BUSINESS ENTITY PRINCIPAL
The separate economic entity
assumption assumes that the
business is separate from its
owners.

9. STABLE DOLLAR ASSUMPTION
The cost principal and the stable.dollar
assumption work very well in period of
stable prices but are less satisfactory
under condition of rapid inflation.

10. For Watching
Prop:. Sadique shafique
(KOHAT UNIVERSITY OF SCIENCE AND TECHNOLOGY PAKISTAN)