Which of these is NOT one of the four underlying assumptions?

Answer

Conservatism

Options - A. Conservatism - B. Separate entity - C. Going concern - D. Periodicity Why - A. Correct — conservatism is a component of reliability, a qualitative characteristic; the four assumptions are separate entity, going concern, stable monetary unit and periodicity. - B. Separate entity — whose transactions are recorded — is an assumption. - C. Going concern — the entity will keep operating — is an assumption. - D. Periodicity — life cut into reporting periods — is an assumption.

Lyryx Intermediate FA Vol 1 §2.7 (ASPE column); Hermanson Vol 1 ch 1, ch 5 (concept map A7, A8)