The assumptions underlying GAAP include: a. Monetary unity; going concern; verifiability. b. Monetary unity; economic entity; completeness. c. Completeness; going concern; periodicity. d. Economic entity; going concern; periodicity.

The correct answer is D "Economic entity; going concern; periodicity."

Explanation:

GAAP are characterized as rules of activity or lead which are gotten as a matter of fact and practice and when they demonstrate helpful, they become acknowledged standards of bookkeeping.

Economic entity Assumption

As indicated by this presumption, the business is treated as a unit or element separated from its proprietors, lenders, directors, and others.

At the end of the day, the owner of an undertaking is constantly viewed as independent and unmistakable from the business which he controls.

All the exchanges of the business are recorded in the books of the business from the business. Indeed, even the owner is treated as a loan boss to the degree of his capital.

Endless supply of cash in the business by the owner, it is considered that the owner has given cash and the business has gotten the cash.

The suspicion of the different substance applies to all types of business associations.

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