Question

What is meant by fundamental accounting assumptions? Explain accounting assumptions in detail.

Answer 1

Answer:

Fundamental assumptions, basic assumptions or fundamental accounting assumptions mean the accounting concepts that have been considered and followed while recording financial information. As information needs are different from person to person, entity to entity and situation to situation thus such assumptions vary.

Explanation:

Fundamental Accounting Assumptions. ... 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.