Answer:
Key accounting assumptions state how a business is organized and operates. They provide structure to how business transactions are recorded. If any of these assumptions are not true, it may be necessary to alter the financial information produced by a business and reported in its financial statements.
Explanation:
The purpose of having accounting assumptions is to provide a basis of consistency that the readers of the financial statements can use for evaluating the genuineness of the financials of a company and confirming its financial wellbeing depicted in the same.
