2025 · Q77
Which one of the following is not a 'fundamental accounting assumption' in the preparation of financial statements?
General Accounting Principles, Auditing and InsuranceBills of exchange
- AMatching concept
- BGoing concern
- CAccrual
- DConsistency
Explanation
AS-1 on disclosure of accounting policies lists three fundamental accounting assumptions: going concern, consistency and accrual. The matching concept is an important principle but not one of the three fundamental assumptions, so it is the correct answer.