Which of the following sets includes only accounting assumptions and conventions?
A) timeliness, prudence, historical cost, and neutrality
B) matching, comparability, period of time, and faithful representation
C) monetary unit, going concern, relevance, and materiality
D) monetary unit, entity, going concern, and recognition

Question

Quizplus · Accepted Answer

Accounting assumptions and conventions are fundamental principles that guide the preparation and presentation of financial statements. The set in option D includes "monetary unit" (assuming transactions can be measured in a stable currency), "entity" (treating the business as separate from its owners), "going concern" (assuming the business will continue operating in the foreseeable future), and "recognition" (criteria for recognizing items in the financial statements), which are all foundational assumptions or conventions in accounting.

Which of the Following Sets Includes Only Accounting Assumptions and Conventions