Why are there rules in accounting?
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Accounting end goal are taxes and credit.
Tax purposes : Alex got paid 120$ to mow lawn through the year. Instead of paying 12$ on january, he paid 1$ every month from january to december. Because the 120$ payment is not for january but through out the year.
Credit purposes : Benny wants to borrow your money, you are not sure whether benny can pay you back. So you ask benny, how can you pay me back? And then Benny lists down his allowance money, the rest of his debt to your other friends. And he told you about that job his father has been having, he said he is going to get more money at the end of the month. With those assurance, you decided to lend him some money.
Accounting rule ensure that taxes are accrued accordingly and paid fairly. Makes sure that an entity can afford debt or investments.
The rule is a standardized guideline used by entity around the globe, so an entity cant just make things up and lie about their financials (to avoid tax for example)
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