2.3 Matching rule: an important rule. All the transactions must be balanced and declared accordingly. The explanation of every particular with respect to the chart of accounts must be well organized. 2.4 Dual aspect: it simply says that a transaction involves two accounts, one will be debited, and another one will be credited. It is the technical translation of the fact that a transaction is made of two movements of value, most usually one leaving the firm, and one entering the firm. 2.5 Materiality rule: we create different accounts to distinguish expenditures or assets or liabilities of different nature, but we don't create new accounts for insignificant things, we treat them as a lump quantity. 3. Ethical rules 3.1 Prudence rule: surprisingly enough there are transactions where we have the choice of how to record them (this is the case, for instance, of passing provisions). The rule says: when you have a choice between several recording methods, choose the one that minimizes the profit. That way we are prudent. 3.2 Consistency rule: when we have adopted one accounting way to such and such transaction, we should stick to the same way in the subsequent periods. It is important, because one of the functions of the accounting system is to show the evolution of the firm from one year to the next. If we change the accounting procedures, we end up with figures which are not comparable. 3.3 Relevance rule: put only relevant information in the accounting documents and their accompanying appendices.
2.3 Matching rule: an important rule. All the transactions must be balanced and declared accordingly. The explanation of every particular with respect to the chart of accounts must be well organized. 2.4 Dual aspect: it simply says that a transaction involves two accounts, one will be debited, and another one will be credited. It is the technical translation of the fact that a transaction is made of two movements of value, most usually one leaving the firm, and one entering the firm. 2.5 Materiality rule: we create different accounts to distinguish expenditures or assets or liabilities of different nature, but we don't create new accounts for insignificant things, we treat them as a lump quantity. 3. Ethical rules 3.1 Prudence rule: surprisingly enough there are transactions where we have the choice of how to record them (this is the case, for instance, of passing provisions). The rule says: when you have a choice between several recording methods, choose the one that minimizes the profit. That way we are prudent. 3.2 Consistency rule: when we have adopted one accounting way to such and such transaction, we should stick to the same way in the subsequent periods. It is important, because one of the functions of the accounting system is to show the evolution of the firm from one year to the next. If we change the accounting procedures, we end up with figures which are not comparable. 3.3 Relevance rule: put only relevant information in the accounting documents and their accompanying appendices.
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