00:01
Here we have to match each item to the accounting principle.
00:06
So number one says all relevant information should be included in the financial reports.
00:13
So this is full disclosure.
00:19
Number two says in case of doubt, assets and income should not be overstated.
00:26
That is conservatism.
00:29
Three, says to assume that the company will continue indefinitely.
00:39
This is going concern.
00:44
Four, says all transactions should be supported by unbiased evidence.
00:51
So this is verifiability.
00:57
Number five, says expenses should be recorded in the period when the revenue is generated.
01:04
So this is accrual accounting...