What are the four assumptions of accounting?

The four basic assumptions of accounting are accounting subject, going concern, accounting period and monetary measurement.

The accounting entity is the name of the company we see in the financial report, which means that all the data and information reflected in the financial report are limited to the company's own economic activities and can be completely distinguished from other economic entities.

Sustainable operation means that an enterprise will continue to operate in the foreseeable period and will not go bankrupt and liquidate.

Accounting staging is actually a technical extension of the assumption of going concern. We need to know the assets and operating results of a listed company for a period of time, so we must artificially divide the production and operation of enterprises into intervals, such as one month, one quarter, six months and one year.

The hypothesis of monetary measurement is that all economic activities of enterprises should be accurately measured by money. This assumption has two meanings. One is that all economic activities can be accurately measured by money, and the other is that the currency value has remained stable.