GAAP (Generally Accepted Accounting Principles) is the framework, rules and guidelines of the financial accounting profession with a purpose of standardizing the accounting concepts, principles and procedures. The goal is to provide timely, accurate information so that managers and investors can make decisions. Accounting has to follow certain fundamental rules that form the basic accounting concepts and principles. Basic Accounting Concepts and Principles Explained Simply. Lesson 1 in the Basic Accounting series:. Basic principles of Accounting What is accounting? Though accounting for income and expenses in a business environment is a complex process, the basics of accounting are relatively simple. Here’s a list of more than 5 basic accounting principles that make up GAAP in the United States. I wrote a short description for each as well as an explanation on how they relate to financial accounting. If you are doing business, then you need to know the basic accounting principles by heart. Even if you have an accountant that takes care of that “accounting stuff”, you need to know accounting basics such as debits and credits and some accounting terminology. A number of basic accounting principles have been developed through common usage. I designed this basic accounting course to give you an understanding of the basic accounting principles, transactions, and operations. Accounting is the language of business.Thus, every entrepreneur, executive, manager or student needs to understand at least the basic accounting principles. The common set of U.S. accounting principles is the … The best-known of these principles are as follows: Accrual principle . Adding to Quora User's excellent summary detailing the assumptions, principles and conventions that are used in accounting, I would like to add the reasons 'why' accounting has adopted these basic principles. Accounting refers to the systematic recording of business transactions and preparation of statements relating to assets, liabilities and functioning results of a business. A system known as the Generally Accepted Accounting Principles defines four basic assumptions, four basic principles and four basic constraints to business accounting. To find out how you can apply these basic accounting principles to your business or if you just want to boost your knowledge on the subject, then scroll back up to the top of this page and click the BUY IT NOW button. Accounting principles are the rules and guidelines that companies must follow when reporting financial data. Accounting is concerned with two separate but COMPLEMENTARY business activities: • The detailed recording of all the financial transactions of the business (called bookkeeping). 3 Basic principles of accounting information system by rasel • February 22, 2015 • 1 Comment There are three basic principles of accounting information system they …