Explain "basic fundamental Assumptions"?
- 2 Answers
- 7217 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / deepak jha
Basic fundamental Accounting assumptions are:
1: Going concern
2: consistency
3: Accurual
| Is This Answer Correct ? | 37 Yes | 2 No |
Answer / yashita tripathy
*accounting entity - wherein the business considered as "a
separate and distinct entity apart from the owner"
* going concern assumption - the business is assumed to have
a continuous life of existence.
*time period assumption -since the business is assumed to
have a continuous life of existence, the life of the
business is divided into equal periods wherein at the end of
each period, the accountant prepares a financial statements.
the accounting periods can be monthly basis, quarterly
basis, semi-annual basis and yearly or annual basis (you can
use calendar year, fiscal year or natural business year).
*unit of measure - use of the country's standard monetary
unit (like dollars in U.S.A, Yen in Japan). This is to
assure that the "unit of measure| has a stable value (which
means, the purchasing power is constant regardless of
inflationrates or fluctuations in the money value.
* Accrual basis - assumes that the recording of income and
expenses follow the accrual basis of accounting. That is :
income is recognized when earned regardless of when it is
received and expenses is recognized when incurred regardless
of when it is paid.
| Is This Answer Correct ? | 0 Yes | 0 No |
why are cutting tds?
what do you know about NAV
what is purchase consideration? How does it come about and how is it treated in the books?
what is the difference between TAN and TIN?
What is accrued account payable?? Give some journal entries with examples.
WHAT IS IFRS?
how to entry of hra
taken loan from Private person(Dec'2014) - Rs. 6 lac and already interest paid for the year 115200 but interest taken for A/c Rs.38400/-.(upto March2015). remaining amount for this year i.e. 76800/- how to enter in tally. please clearify
1 Answers College School Exams Tests,
what is a financial statement
please send me some previous sbi clerical interview questions to my email id....
what is calls-in-arrears?
How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?
Audit 
