Explain "basic fundamental Assumptions"?
- 2 Answers
- 7599 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 |
how to entry in tally for other person check received
Expand-------GDR
why all the people prepared balance sheet like liabilities and assets ? why not we prepared like assets and liabilities
define drawer or maker
Expand---------EDP
what is ERP packages?
what are the Bank Vouchers?how it is entered in books of accounts?
Expand-----TOA
expand I T C
if you reconsilation is doing at end of the month 31 march. you have question for one amount on 30th march which is the banker said that we do not know about the 30th march entry, the amount deposit and expenses. please come after one week. but u need to complete reconcilation end of march. so, what will you do know?
how to prepare Profit and los accounts ?
8 Answers College School Exams Tests, MLA, Study Overseas,
what is golden rules of accounts
Audit 
