Principles	Descriptions
Historical Cost	Acquisition cost is considered a reliable basis upon which to account for assets and liabilities of an enterprise.  Historical cost has been found to be a more stable and consistent benchmark than other suggested valuation methods.
Revenue Recognition	Revenue is recognized when: Realized or realizable (Revenue Recognition Principle): Realized means that products (goods or services), merchandise, or other assets have been exchanged for cash or claims to cash.  Realizablemeans that assets received or held are readily convertible into cash or claims to cash. Earned:  means that the entity has substantially completed its obligations under a contract (e.g., delivered the goods or performed the services and has earned the right to be paid by the buyer). The "Point of Sale" type transaction is the revenue event that most people are familiar with and understand (e.g., paying for something at the checkout counter in a grocery store).
Matching	Accountants attempt to "match" expenses incurred while earning revenues with the related revenues. Use of accrual accounting proceduresassists in allocating revenues and expenses properly among the fiscal periods that compose the life of a business entity.
Full Disclosure	When preparing financial statements, accountants should include sufficient information to permit a knowledgeable reader to make an informed judgment about the financial condition of the company.