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Unformatted text preview: that companies record their assets at their own cost for the time that its purchased, and for how long it is held. Another principle is the GAAP (Generally Accepted Accounting Principles) where how to record economic events is indicated. There are also many other principles such as the Securities and Exchange Commission, the Financial Accounting Standards Board, and also the International Accounting Standards Board, (Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. 2008). To ensure sound financial reporting, the dependence of using proper principles such as the GAAP will keep companies accounting in tact. The assumptions, particularly the monetary unit assumption will keep information clear as well as recorded, Constraints of knowing what can and cant be done within the companys accounting....
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- Spring '09