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The lesson groups accounting principles into assumptions, concepts, constraints and standards. Which of the following items is an accounting assumption, NOT a concept or a constraint, according to the lesson's framework?
Answer & Solution
Correct answer: C.
1. The lesson groups Money Measurement, Business Entity, Going Concern and Time Period as assumptions.
2. Revenue Realisation is listed under concepts, not assumptions.
3. Materiality and Prudence are listed under constraints.
4. So Money Measurement is the only assumption in the list.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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