Question

Identy which basic assumption of accoutning is best descrbed for each item below

Answer 1

The basic assumptions of accounting that best describe the given items are: observations and intuition, other things being equal, and asset and liability management.

Step-by-step explanation:

The basic assumption of accounting that best describes each item can be identified as follows:

1. Observations and intuition: This assumption aligns with the idea that basic equations in accounting should accurately represent real-world situations.
2. Other things being equal: This assumption is important when examining changes and adjustments in accounting; it acknowledges that multiple factors can influence outcomes.
3. Asset and liability management: This assumption relates to the balance sheet and the management of assets and liabilities within an organization or bank.