Accounting Rules

• Business Entity principle is where the business is treated as being completely separate from the owner of the business.
• Consistency principle is where accounting methods must be used consistently from one accounting period to the next.
• Principle of duality is where every transaction is recorded twice - once on the debit side, and once on the credit side
• Going concern principle is where accounting records are maintained on that the business will continue to operate for an indefinite period of time.
• Historic cost is where all assets and expenses are initially recorded at their actual cost.
• Matching principle is where the revenue of the accounting period is matched against the costs of the same period
• Materiality principle is where individual items will not significantly affect either the profit or the assets of a business and do not need to be recorded separately.
• Money measurement principle is only information which can be expressed in the terms of money which can be recorded in the accounting records.
• Prudence principle is where profits and assets should not be overstated and losses and liabilities should not be understated.
• Realisation principle is where revenue is only regarded as being earned when the legal title to the goods or services passes from the seller to the buyer.