1. (GAAPs)

2.  Accountants follow a set of rules or standards known as generally accepted accounting principles (GAAPs)  GAAPs include a number of specific rules, practices, and procedures  The Canadian Institute of Chartered Accountants (CICA) is the professional accounting organization that establishes the standards for accountants in Canada.  The complete body of accounting knowledge and opinion is contained in the CICA Handbook.

3.  The business entity concept provides that the accounting for a business organization must be kept separate from the personal affairs of its owner, or from any other business or organization.

4.  The continuing concern concept assumes that a business will continue to operate unless it is known that it will not.  This is also known as the going concern concept.

5.  The principle of conservatism provides that accounting for a business should be fair and reasonable.