Principles of Accounting: Concepts and Applications, 9th Edition is known for its valuable coverage of the fundamentals, real-world examples, and applications in the field today. The author team's extensive experience in teaching principles of accounting to undergraduate students has resulted in a text that focuses on the topics that students find most interesting and useful.

By knowing the basic principles of accounting, we can go on to understand the different accounting methods and how they are used in financial reports. These principles support a sound and strong financial reporting system that ultimately fosters confidence in a company's financial position.

Principles of Accounting – Accounting is defined as the methodical process of recording, classifying and summarizing the financial transactions and events of a business entity. Accounting principles are the basic concepts that represent this process. Principles of accounting is also referred to as accounting theory.
The accounting principles are not based on any specific laws but are based on accepted practices and standards. These principles are designated by various accounting association such as FASB or GAAP.

Accounting is one of the most important parts of running a business efficiently. It is also very important to know how to keep financial records that are accurate and reflect the financial status of your business. Understanding accounting and the financial records that you need to create will help you make better business decisions.

Accounting concepts refers to the techniques and functions of a company’s accounting system. Accounting research is based on three primary accounting concepts, namely, the historical cost concept, the going concern concept, and the matching principle.
#1. The Historical Cost Concept
The historical cost concept refers to the recording of a transaction in the financial records at the original price or valuation as of the time it occurred. This means that no adjustments are made for any changes in value due to inflation or market changes.

Accounting is the measurement, processing and communication of financial information about economic entities such as businesses and corporations. The modern field was established in 1494. The terms accounting and financial reporting are often used as synonyms. Accounting can be divided into three sub-categories: managerial accounting, financial accounting and statutory accounting.