Basic accounting principles provide the rules for recording transactions and reporting financial information. They ensure consistency and allow for statutory reporting, banking relationships, and gaining supplier credit. The key principles include accounting standards, concepts, and policies set by laws, listing rules, GAAP, IAS, and IFRS. Major concepts include the business entity, going concern, consistency, matching, accrual, prudence, and revenue recognition concepts. Proper application of accounting principles requires collaboration between departments to accurately record revenues, costs, and expenses in the correct period.