Question

What are the principles of GAAP in accounting?

Answer 1

There are ten principles or rules of GAAP in accounting:

1. Principle of regularity
2. Principle of consistency
3. Principle of permanence of methods
4. Principle of sincerity
5. Principle of non-compensation
6. Principle of prudence
7. Principle of periodicity
8. Principle of continuity
9. Principle of materiality
10. Principle of utmost good faith

Also read:

• MCQs on GAAP
• GAAP (Generally Accepted Accounting Principles)
• Difference Between GAAP and IFRS

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