Accounting concepts are based on ........

Principles of Accounting & Financial Management Concepts of Accounting

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Accounting concepts are based on:

Certain assumptions

Certain facts and figures

Certain accounting records

Government guidelines

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Explanation:

Financial Statements are prepared based on certain assumptions which are neither disclosed nor required to be disclosed, so they are called Fundamental Accounting Assumptions, like Going Concern, Consistency & Accrual.

As per AS 1 of the ICAI, certain fundamental accounting assumptions underlie the preparation and presentation of financial statements. They are usually not specifically stated because their acceptance and use are assumed. Disclosure is necessary only if they are not followed.