Which of the following statements is correct in relation to the assumptions to be made when preparing financial reports?

Question

Quizplus · Accepted Answer

The underlying assumption for preparing financial reports is that they are prepared on a going concern basis, which means the organization will continue to operate in the foreseeable future. While there are other assumptions related to accrual accounting and consistency, the going concern assumption is the most fundamental. Option B is incorrect, as while the Conceptual Framework does outline several principles, they are overarching concepts rather than specific assumptions. Option C is incorrect, as several assumptions underpin financial reporting. Option D is incorrect, as more information is not always better than less, and can sometimes be overwhelming or misleading.

Which of the Following Statements Is Correct in Relation to the Assumptions