Understanding GAAP. 1.) Principle of Regularity. ... 3.) Principle of Sincerity. ... 4.) Principle of Permanence of Methods. ... 5.) Principle of Non-Compensation. ... 6.) Principle of Prudence. ... 7.) Principle of Continuity. ... 8.) Principle of Periodicity. ... 9.) Principle of Materiality / Good Faith.