Accounting Principles - Unlike in the past when accounting statements were largely needed by the proprietor, these days the accounting statements are needed by various parties who have vested interest in the business, namely, proprietors, investors, creditors, government and many others. Accounting statements disclose the profitability and solvency of the business to various parties. It is, therefore, necessary that such statements should be prepared according to some standard language and set rules.

These rules are usually called 'Generally accepted accounting principles' (GAAP). These Principles Of Accounting have been generally accepted by accountants all over the world as general guidelines for preparing the accounting statements. These principles have developed over a course of period from usage, reason, common experiences, historical precedents, statements of individuals, professional bodies and regulation of Government agencies. https://www.pdffiles.in/accounting-principles/