1. The life of a company can be divided into time periods, and useful reports can be prepared for those periods. 2. Revenue is recorded when products and services are delivered. 3. A business is accounted for separately from other business entities and its owner. 4. Record expenses incurred to generate the revenue reported. 5. Financial statement details that would impact decisions are offen disclosed in the footrotes. 6. Accounting reports presume that the business will continue operating instead of being closed