• Economic entity assumption – Personal and business transactions will be kept separate. As well as, each economic entity.
  • Monetary unit assumption. Financial records shall only include transactions with a dollar value.
  • Full disclosure principle. Past, current, good and bad. All must be reported in the financial reports, including notes if necessary.
  • Time period assumption. Businesses will report in such time periods, such as monthly, quarterly, yearly or other, as to best report transactions.
  • Revenue recognition principle. Revenue is earned and recognized when service or product is delivered, not necessarily when cash is received. (Following the Accrual basis accounting.