Which of the following is not a fundamental accounting assumption under Indian Accounting Standards?
A. Materiality
B. Accrual
C. Consistency
D. Going Concern
Answer: Option A
Solution (By JKSSB Mock Tests)
Materiality is a modifying principle, not a fundamental accounting assumption. The three fundamental accounting assumptions as per AS 1 are Going Concern, Consistency, and Accrual.
Explanation:
COGS for manufacturer = Opening finished goods + Cost of production - Closing finished goods. Cost of production = total manufacturing cost + opening WIP - closing WIP.
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