accounting principle Synonyms
No Synonyms and anytonyms found
accounting principle Meaning
accounting principle (n)
a principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions
accounting principle Sentence Examples
- Accrual accounting is a fundamental accounting principle that recognizes revenues and expenses when they are incurred, not when the cash is exchanged.
- The consistency accounting principle ensures that a company uses the same accounting methods and principles from one period to the next for reliable financial reporting.
- The materiality accounting principle guides accountants to focus on information that is relevant and significant for decision-making.
- The cost principle, also known as the historical cost principle, dictates that assets should be recorded at their original cost in the accounting records.
- The matching principle is an essential accounting principle that requires aligning expenses with the revenues they generate to accurately reflect the company's financial performance.
- The conservatism accounting principle encourages accountants to be cautious when reporting financial information, preferring understatement over overstatement.
- The objectivity accounting principle emphasizes the use of unbiased and verifiable evidence in financial reporting to ensure accuracy.
- The revenue recognition principle dictates when and how a company should record revenue in its accounting records.
- The going concern accounting principle assumes that a company will continue its operations indefinitely, allowing for the proper valuation of assets and liabilities.
- The full disclosure accounting principle requires companies to disclose all relevant information that may impact financial decision-making in their financial statements.
FAQs About the word accounting principle
a principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions
No synonyms found.
No antonyms found.
Accrual accounting is a fundamental accounting principle that recognizes revenues and expenses when they are incurred, not when the cash is exchanged.
The consistency accounting principle ensures that a company uses the same accounting methods and principles from one period to the next for reliable financial reporting.
The materiality accounting principle guides accountants to focus on information that is relevant and significant for decision-making.
The cost principle, also known as the historical cost principle, dictates that assets should be recorded at their original cost in the accounting records.
