GAAP(GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

• Business Entity Concept

  • different from other businesses
  • distinct or separate from other business
• Objectivity principle

  • buyers and sellers set their own goals for the best bargain for themselves
• Continuity-or-going-concern concept

  • whenever there are excess materials, it will be kept and use for another project and just add some materials
• Cost principle

  • all goods and services purchased are recorded at cost
• Stable monetary measurement concept

  • Accountants records business transaction in stable monetary measurement unit