Question

which three accounting principles are treated as fundamental Accounting assumptions b ICAI​

Answer 1

Answer:

There are three fundamental assumptions help primarily important:

Going concern

Consistency

Accrual

Explanation:

1. Going concern states that the business man has an optimistic approach , expects that the business extends till foreseeable future and doesn't liquidate in the near future. This assumption is required to create provisions for future damages and to meet future contingencies.

2. Consistency states that the business has to follow the set of accounting policies and conventions consistently. It actually leads to comparability.. As the more you keep changing , the less comparable will it be.

3. Accrual assumption states that all revenues should be recorded when they're realised and not whn they're received. Similarly all expenses are recorded when they're incurred and not when they're paid.

hope you got some clarity !