This also holds true for bills as they are recorded when they were incurred, in place of when they were paid. Consistency Principle Once a company adopts an accounting method or policy, that method or policy should continue for use in similar situations, unless there are most economical reasons. Not following this precept means useful comparisons of economic statements over diverse accounting periods cannot be made due to inconsistent data being usedCost Principle A company should record its fixed short and long term assets at customary cost and never fair value at case study solution time of acquisition minus accumulated depreciation. Economic Entity Principle A enterprise is regarded a separate entity from its owners and should be kept break away case study solution enterprise. Full Disclosure Principle All non fundamental information or notes are disclosed in case study answer economic statements to permit a reference point. Going Concern Principle Stipulates that a enterprise is expected to proceed indefinitely and assets are not meant to be sold instantly or liquidated.