Assumptions are traditions and customs, which have been developed over a period of time and well-accepted by the profession. Basic accounting assumptions provide a foundation for recording the transactions and preparing the financial statements there from. There are four basic assumptions that are considered as cornerstones of the foundation of accounting.
For UBS project, the assumptions that we can made is that, the company that we have taken, is the company might be paid the expenses not on time but they record it as at on that month. for example,the utilities bills for February,they pay it on March,but they record it on February. These concept are wrongly recorded.
However, we try to do more accounting assumptions to this company, and try to advise to the owner on how to improve better in doing accounting.
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