Question

. If nothing is given in the financial statements about the three accountingassumptions then it is to be

treated as it

(A) Is assumed that it is not followed

(B) Is assumed to be followed

(C) Is assumed to be followed to some extent

(D) None of the above​

Answer 1

Answer:

(C) Is assumed to be followed to some extent

Explanation:

If nothing is written in the financial statements about the fundamental accounting assumptions, then it could be presumed that:- They have not been followed. They have been followed. They have been followed to some extent.

Answer 2

The correct answer is OPTION B: Is assumed to be followed.

• Certain basic accounting assumptions must be made while creating a company's financial accounts.
• If these accounting assumptions aren't clearly expressed, they'll be assumed to be followed in the financial statements.
• Three essential accounting assumptions apply to each accounting transaction involving an entity.
• Whether or not the corporation follows these basic accounting standards makes no impact.
• If a company fails to meet these assumptions, it must declare all relevant financial transactions and financial statements.