Accounting have established group of assumptions, those assumptions are the basics of financial accounting. At the same time, assumptions are not accounting principles, as they are more of agreed upon rules. Assumptions:

Entity unit assumption: as the name indicated, the business is a separate and distinct from its owner(s), which in effect means that the entity accounts and finances are totally separated from the financial of owners, and the business is treated as a person by itself.

Going concern assumption: meaning that the business is going to be operated for non predefined period, in other words, there is no ending date for business life.

Monetary unit assumption: meaning that the business should have one money unit to record its transactions, for example U.S. dollar.

Time period assumption: meaning that business profit or loses are measured on timely basis, for example one year, six months, 3 months.

Consistency: meaning that the business should use the same accounting techniques, as change of methods used could change the outcome.

Accrual basis: Recognizing non-cash circumstances as they occur.

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1. ↑ IntLAS.com Intlas learning section