Practicing Success
Which of the following is not an assumption used in the preparation of financial statements of a company? |
Going Concern Conservatism Money measurement Both options 2 and 3 |
Conservatism |
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. Conservatism is a convention and not assumption. |