The Horngren Principles of Accounting

The Horngren Principles of Accounting provide a foundation for understanding how businesses record, summarize, and report financial information. They emphasize accuracy, consistency, and relevance in financial reporting to help users make informed decisions. These principles guide accountants in maintaining integrity in financial statements by ensuring transactions are properly documented, measurements are reliable, and reports reflect true economic activities. Essentially, they set the standards for clear and truthful communication of a company's financial health, enabling stakeholders like managers, investors, and creditors to evaluate performance and make sound decisions.