Accounting rests on a small set of fundamental assumptions and principles. These fundamentals are referred to as the ‘Generally Accepted Accounting Principles (GAAP). Understanding the principles gives context and makes accounting practices easier to implement. The underlying objective of ‘Accounting Statements’ is the true, fair, and authentic reflection of the business operations and its results. Organizations can achieve their objectives through the support of accounting concepts and conventions. Also, you can call the nature of accounting principles.