Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Which of the following assumptions are used in the preparation of financial statements of a company?
Options:
Going Concern
Money measurement
Realisation
All of the above
Correct Answer:
All of the above
Explanation:
Postulates: Financial statements are prepared on certain basic assumptions (pre-requisites) known as postulates such as going concern postulate, money measurement postulate, realisation postulate, etc.