CMA Intermediate · Financial Accounting · Disclosure of Accounting Policies (AS 1)
Under AS 1, which of the following is treated as a fundamental accounting assumption?
Consistency is a fundamental accounting assumption under AS 1, along with Going Concern and Accrual. Prudence, substance over form and materiality are considerations in selecting accounting policies, so they are not fundamental assumptions.
- APrudence
- BMateriality
- CConsistencyCorrect
- DSubstance over form
Explanation
AS 1 lists Going Concern, Consistency and Accrual as the fundamental accounting assumptions. Prudence, substance over form and materiality are considerations governing the selection of accounting policies, not fundamental assumptions.
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