Question

What are the 4 basic principles of accounting under the third level

Answer 1

The four basic principles of accounting are equity, consistency, conservatism, and materiality.

Step-by-step explanation:

The four basic principles of accounting are as follows:

1. Equity: Ensures that financial transactions are fair and impartial to all parties involved.
2. Consistency: Requires consistent methods and procedures to be followed when recording and reporting financial information.
3. Conservatism: Requires accountants to err on the side of caution when making judgments and estimates, so as to not overstate assets or income.
4. Materiality: States that only significant information should be included in financial statements, while immaterial information can be omitted.