Summarize the four basic principles of GAAP accounting
The four basic principles of GAAP accounting are:
1. Historical Cost Principle: Accounting and reporting assets and liabilities acquisition costs instead of their fair market value
2. Revenue Recognition Principle: Record revenue when earned instead of received
3. Matching Principle: Expenses must be matched with revenues
4. Full Disclosure Principle: The amount of information disclosed must be based on a trade-off analysis between cost and transparency