Answer:
The answer is: False
Step-by-step explanation:
There are basic accounting principles that must be followed when elaborating financial statements and the more accurate they are, the better. Accountants are considered very meticulous and exact professionals, it´s not the most entertaining career. Some of the most relevant ones are:
Accrual principle: Accounting transactions should be recorded in the periods when they actually occur, and they shouldn´t be artificially delayed or accelerated.
Consistency principle: Once you adopt an accounting method, you should continue to use it until a demonstrably better method comes along.
Reliability principle: Only those transactions that can be proven should be recorded.
Time period principle: A business should report the results of its operations over a standard period of time.
Revenue recognition principle: You should only recognize revenue when the business has completed the earnings process.
Conservatism principle: You should record expenses and liabilities as soon as possible, but to record revenues and assets only when you are sure that they will occur.
Cost principle: You should only record its assets, liabilities, and equity investments at their original purchase costs.
Economic entity principle: Transactions of a business should be kept separate from those of its owners and other businesses.
Full disclosure principle: You should include alongside the financial statements all of the information that may impact a reader's understanding.
Going concern principle: A business will remain in operation for the foreseeable future.
Matching principle: When you record revenue, you should record all related expenses at the same time.
Materiality principle: You should record a transaction in the accounting records if not doing so might have altered the decision making process of someone reading the company's financial statements.
Monetary unit principle: A business should only record transactions that can be stated in terms of a unit of currency.