Question

Discuss two accounting principles that are, in

your opinion, the most important and form the
foundation of modern-day accounting. Explain
the reasons for your choices.

Answer 1

Matching principle because it is an accounting principle for recording revenues and expenses. It requires that a business records expenses alongside revenues earned.

Disclosure principle because increased transparency in the corporations' operations and management makes it easier for investors to make informed decisions. It also cuts down on the possibility of manipulation or misuse of investors' funds.

Answer 2

Revenue Principle and Cost Principle

Step-by-step explanation:

Revenue principle defines a point in time when bookkeepers may record a transaction as revenue on the books. This principle states that revenue for the business is earned and recorded at the point of sale.

Cost Principle states that you should use the historical cost of an item in the books, not the resell cost.