To determine which among the given options is not a 'fundamental accounting assumption' in the preparation of financial statements, it's important to understand the fundamental accounting assumptions according to accounting principles. These assumptions are the cornerstones for preparing financial statements, and typically include:
Let's evaluate the given options:
Hence, from the options given, the "Matching Concept" is not a fundamental accounting assumption in the preparation of financial statements. As such, the correct answer is:
This concept is instead part of the accounting principles that dictate how income and expenses should be matched in the same period.
The traditional accounting practice of resolving uncertainty by choosing the solution that leads to the lower amount of income being recognized in the current accounting period is based on which of the following accounting principles?
The policy ‘anticipate no profit and provide for all possible losses’ arises due to
“Advance received from a supplier is not taken as income or sales.” This comment is based on
Revenue from sale of goods ordinarily is reported as a part of the earning in the period
The generally acceptable accounting principles (GAAP) fulfill the conditions of
(i) Relevance
(ii) Objectivity
(iii) Feasibility