Accounts should always report a conservative figure
Example: Provision of Bad Debts
Match incomes and expenses to the year they are earned/incurred, this results in the correct measurement of profit.
Sell a good today and will be paid next you, will put this in this years sales.
Only record a sale once the invoice has changed hands (sale is recognised) irrespective of whether cash has changed hands.
Example: Sale of goods on sale or return basis.
Non-current assest is worth so little it is not classified specifically…