1. measuring principle
The principle of measurement means that the monetary units of measurement used in accounting should be consistent and stable. For similar assets or liabilities, they must be measured according to a unified value standard in the accounting treatment process, and cannot be adjusted at will. For example, the fixed assets of an enterprise should be included in the book value according to its original value, not according to the current market price.
2. Accrual basis
Accrual basis means that when the rights and obligations of a business occur, the business should be correctly recorded in the account. This is a basic principle of accounting, which ensures that the financial statements of enterprises can accurately reflect their real situation. In practical application, accrual basis needs to pay attention to the distinction between income and expenses and confirm it in time. For example, when an enterprise sells goods, it is necessary to take the sales date as the time point to confirm the income.
3. going concern assumption
The assumption of going concern means that when estimating the value of assets and liabilities, an enterprise should assume that it will continue to operate. This assumption is a principle that must be followed in accounting, which is mainly used to determine the accounting estimation and calculation of enterprises. For example, when calculating depreciation, it is necessary to predict the service life of fixed assets and assume that the enterprise will not go bankrupt in this process.
4. Entity hypothesis
Entity hypothesis means that an enterprise should be regarded as a completely independent unit in accounting. Each business not only needs to be recorded separately, but also needs to be compared with other related businesses. This principle can help enterprises to understand their own financial situation and compare and evaluate it with that of other enterprises.
To sum up, the basic accounting principles are the rules that accounting must abide by, and are the premise to ensure the truthfulness, accuracy and comparability of financial statements. In practical application, it is necessary to judge according to the specific situation to ensure the accounting quality.