The basic assumption which underline the preparation of periodic financial statement is known as accounting

The basic assumption which underlines the preparation of periodic financial statements is known as accounting concepts. These concepts are a set of principles that guide the preparation and presentation of financial statements. They are essential to ensure that financial statements are reliable, comparable, and relevant to the users of the statements. There are several accounting concepts, including the going concern concept, the accruals concept, the consistency concept, the prudence concept, and the materiality concept. These concepts are used by accountants to ensure that financial statements are prepared in a consistent and reliable manner and that they provide useful information to the users of the statements.