Multiple choice

Which of the following is fundamental accounting assumptions?

  1. Going concern

  2. Materiality

  3. Prudence

  4. Business entity

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Going concern is one of the three fundamental accounting assumptions specified in AS-1, along with accrual and business entity. Materiality and prudence are important accounting concepts but are not classified as fundamental assumptions in the accounting framework.