 Hello in this lecture we will define compatibility principle. According to fundamental accounting principles while 22nd edition the definition of compatibility principle is information system principle that prescribes an accounting system to conform with companies activities personnel and structure. So we're looking for an accounting system that can conform to the resources basically that the companies has the activities the personnel and the structure this may seem obvious but it's an important thing to consider especially as we see companies change because as companies grow over time hopefully they're growing over time these needs will change for example if we had the owner here and had a small company that created t-shirts the owner may have a system set up where they can sell the t-shirts for cash receive the cash record the cash deliver the t-shirts to the local market here this person's in need of a t-shirt and sell that and record everything however of course if the company then grew and we had t-shirts that were going to be sold say overseas t-shirts that are going to be sold to a larger market we would then have to think about how that system would then need to change and the resources involved in how are we going to deal with basically the logistics of that in terms of recording the transactions dealing with different sales tax dealing with the shipping processes of those types of transactions as businesses change as businesses grow