Accounting in general has a set of rules and guidelines that should be followed when reporting financial statements, and the company must submit financial statements regularly in accordance with the primary and accepted accounting principles. These include accounting principles in financial accounting, which are as follows:
Cost principle: It includes the amounts that are spent in cash within the list of accounting assets and are not subject to modification to the value of the amount.
The principle of accrual and recognition of revenues: through which revenues are recognized and recorded in the accounting books and records when they are realized, and revenues are recognized with their recording in the accounting books and records when they are realized, and the same is the case with expenses.
The principle of preservation: includes a disclosure of losses and profits, whether realized or expected.
Disclosure principle: through which all the institution's financial information related to a specific period of time is identified and disclosed.
The principle of continuity: This principle includes the payment of all financial obligations of the company or institution in order to achieve commercial goals and ensure that the company is not exposed to bankruptcy or settlement.
The principle of imposing the monetary unit: It includes the principle of determining the measurement of the economic activity of the institution or company by defining a specific currency.
Matching principle: This is concerned with matching received or due revenues and expenses according to the accrual basis used.
The principle of the accounting period: through it, the commercial activities that occur in the company during the specified time period are determined in order to facilitate the accounting operations.