Generally Accepted Accounting Principles

1. Cost Principle
Asset should be recorded at original/ acquisitioned cost.

2. Objectivity Principle
Accounting records should be reliable.

3. Materiality Principle
Practicability in determining the value of an item.

4. Matching Principle
Revenue is recognized when earned.
Expense is recognized when incurred.

5. Adequate Disclosure Principle
Financial Statement must be free from material misstatement.