Distinguish between fundamental accounting assumption and accounting policies. [RTP Jan. 2025]
Options
A
B
C
D
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Theoretical FrameworkQ-1 | Accounting PoliciesQuestion 4979 of 110
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
Fundamental Accounting Assumption
There are three fundamental accounting assumptions viz Going concern,
consistency and accrual.
No disclosures is required if all the Disclosure is required if all the fundamental
assumptions has been followed.
If fundamental accounting assumption is not followed, it is to be disclosed in the
financial statements together with the reason
There is no option to choose fundamental accounting assumptions.
Accounting Policies
There is no single list of accounting policies, which are applied in all circumstances.
As Consistency and Accrual. a result, there may be different accounting policies
adopted by different enterprises.
Disclosure is required if a particular accounting policy has been followed
If the policy is changed in subsequent year, the effect of such change should be
disclosed in the financial statements
The firm has an option to select a particular policy
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