Accounting policy:

The accounting policy is a specific principle, guidelines rule, system, and practices applied by the organization in preparing the financial statement.

It is a decision made by an organization in advance how, when, where, and whether record and recognized entity.

Accounting policies are the set of standards govern the organization in the preparation of financial statements.

When an organization preparing the financial statement and considered some events assets rather than an expense. There are three methods to calculate the depreciation expense (straight-line method, reducing balance method, and unit-of-production method) the company chooses one of those methods to calculate the depreciation expense and to find out the carrying value of machinery at the end of the period. In the above two cases, the company is making is an accounting policy choice.