Historical cost – assets are recorded on balance sheet at the purchase cost when the transaction was signed.

Money measurement – every transaction is recorded on the accounts in terms of money.

Business entity – business and its owners are two separate entities.

Dual aspect – every transaction is recorded on the books in two places, as a debit and credit. Therefore, at least two accounts are needed in order to match DR with CR.

Time interval – financial statements need to be prepared in quarterly, semi-annual or on annual basis.