Cash Basis(收付实现制): The cash basis of accounting refers to the accounting method wherein revenues are recognized when cash is received and expenses are recognized when paid,which is usually followed by individuals and small companies,  but is not in compliance with accounting’s matching principle.

Accrual Basis(权责发生制): The accrual basis of accounting is the accounting method wherein revenues are recognized when they are earned and expenses are matched to revenues or the accounting period when they are incurred.

Reliability (可靠性): The reliability principle is a qualitative characteristic in accounting. It is achieved when information is verifiable,objective ( not subjective) and you can depend on it.

Relevance(相关性): The relevance principle is a qualitative characteristic in accounting,, which is associated with information that is timely, useful, has predictive value,and is going to make a difference to adecision maker.

Understandability(可理解性): Accounting information should be understandable to users who have a reasonable knowledge of business and economic activities and who are willing to study the information with reasonable diligence.

Comparability（可比性): The comparability principle is a quality of accounting information that facilitates the comparison of financial reporting of one company to the financial reporting of another company.

Substance over Form(实质重于形式): The substance over form principle requires the accountants,  during the accounting process of identification, recording, measuring and reporting,consider the economic substance of a transaction or event rather than its legal form.

Materiality(重要性): Materiality principle refers to the magnitude of an omission or misstatement of accounting information that,  considering the circumstances, makes it likely that the judgment of a reasonable person relying on the information would have been influenced by the omission or misstatement.

Conservatism(谨慎性): Conservatism principle states that when alternative accounting valuations are equally possible, the accountant should select the one that is least likely to overstate assets and income in the current period.

Timeliness(及时性): Accounting information is timely when it is available to decision makers before it loses its ability to influence decisions.