Question

Explain any two concepts or assumptions in detail

Answer 1

Answer:

When preparing the financial accounts of a company there are some theoretical accounting assumptions which are commonly followed. So unless specified otherwise, it will be assumed that such principles were implemented in the final accounts of the company. The three main assumptions we will deal with are – going concern, consistency, and accrual basis.

Explanation:

Fundamental Accounting Assumptions

Accounting assumptions are the three very basic accounting concepts or principles that are assumed to have been followed in the accounting transactions of an entity. So there is a need for a specific notation saying such concepts have been adhered to, it is understood.

However, this does not mean that such fundamental accounting principles have to be compulsorily followed by all organizations. It is absolutely acceptable if the entity does not follow such assumptions while recording their financial transactions. If these fundamental assumptions have not been followed then the entity should specifically disclose this information, along with their financial statements. This way the users know about such facts.

Hope it helps you❤

Answer 2

Explanation:

thanks dear for free point