The accrual approach to profit measurement is underpinned by which two main accounting assumptions?
A) going concern and historical cost.
B) historical cost and accounting period.
C) accounting period and entity period.
D) accounting period and going concern.

Question

Quizplus · Accepted Answer

The accrual approach relies on the going concern assumption, which assumes that the business will continue operating in the foreseeable future, and the accounting period assumption, which divides the business's life into distinct time periods for reporting purposes.

The Accrual Approach to Profit Measurement Is Underpinned by Which