Basic Principles Of Accounting Golden Rules Of Accounting
Basic Principles of Accounting 1. Business Entity A business is considered a separate entity from the owner(s) and should be treated separately. Any personal transactions of its owner should not be recorded in the business accounting book, vice versa. Unless the owner’s personal transaction involves adding and/or withdrawing resources from the business. 2. Going Concern It assumes that an entity will continue to operate indefinitely. In this basis, assets are recorded based on their original cost and not on market value....