This also holds true for bills as they are recorded after they were incurred, in preference to after they were paid. Consistency Principle Once a company adopts an accounting method or policy, that method or policy should continue to be used in identical cases, unless there are reasonably priced purposes. Not following this principle means useful comparisons of economic statements over distinct accounting durations cannot be made due to inconsistent data being usedCost Principle A business should record its fixed short and long term assets at common cost and never fair value at case study solution time of acquisition minus collected depreciation. Economic Entity Principle A business is considered a separate entity from its owners and may be kept break free case study answer enterprise. Full Disclosure Principle All non regular information or notes are disclosed in case study answer economic statements to permit a reference point. Going Concern Principle Stipulates that a business is expected to proceed indefinitely and assets aren’t meant to be sold automatically or liquidated.