The Framework outlines two underlying assumptions of financial statements.These arE.
A)fair value basis and insolvency assumption.
B)accrual basis of accounting and going concern assumption.
C)cash basis of accounting and insolvency assumption.
D)historical cost accounting and limited life concept.
E)fair value basis of measurement and perpetual life concept.

Question

Quizplus · Accepted Answer

The correct answer is: 2. accrual basis of accounting and going concern assumption.

The Framework Outlines Two Underlying Assumptions of Financial Statements