Accounting principles govern accounting as a discipline.

These principles provide a framework for recording, analyzing, and reporting financial transactions in a consistent and accurate manner. They help ensure that financial information is reliable and can be used by stakeholders to make informed decisions.

Some of the key accounting principles include:

1. The principle of objectivity: Financial information should be recorded based on verifiable evidence, rather than personal opinions or biases.

2. The principle of consistency: Accounting methods and practices should be applied consistently from one period to the next, to allow for meaningful comparisons over time.

3. The principle of materiality: Only significant transactions and events should be recorded in the financial statements, while immaterial items can be disregarded.

4. The principle of conservatism: When faced with uncertainty, accountants should err on the side of caution and record transactions in a way that does not overstate assets or income.

5. The principle of relevance: Financial information should be relevant to the needs of users, providing them with the information necessary to make informed decisions.

By following these principles, accountants can ensure that financial information is accurate, reliable, and useful for decision-making purposes.

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