Explanation of the key accounting principles and assumptions behind the preparation of the financial statements. That is, explain (in your own words) to Santana Rey the general principles that determine: At what value information is recorded in the financial statements (i.e. the measurement principle). When and under what conditions expenses can be recognized in the financial statements. What the dates mean for each financial statement presented (i.e. the time period assumption). What else would be needed for the financials to be complete (i.e. the disclosure principle). Finally, your business memo should include an introductory paragraph (explaining the purpose of the memo) and a concluding paragraph that summarizes the key points, recommendations, and/or next steps. 1-2 pages, single-spaced in proper business memo format. See link below for an example. Use leadings and bullets is encouraged to improve readability