Principles of Accounting- What & Why ???

Accounting is a consistent method of organizing information that makes it possible for you to compare results across periods and industries. If you think of money as the currency of business, then accounting is the language of business. It is this common language that allows you to have confidence in making decisions and forming relationships that are at the heart of every successful business. But what are the grammar of this language of business? The basic principles of accounting are essentially the general decision rules, which govern the development of accounting technique. On the basis of these assumptions of accounting, the following basic principles of accounting have been developed: