Economics · Accounting Assumptions and Standards

Which of the following statements regarding accounting principles, conventions, and standards are correct? A. In the accounting framework, fundamental assumptions like Money Measurement and Business Entity are categorized as Concepts, whereas Materiality and Conservatism are recognized as Conventions. B. According to AS 3, cash flows arising from the purchase and sale of long-term assets are classified as Investing Activities, while borrowings and the payment of dividends are categorized as Financing Activities. C. Under AS 16, borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset must be capitalized as part of the cost of that asset. D. For the valuation of inventories under AS 2, the Weighted Average Cost method is the only permitted cost formula because it helps smooth out price fluctuations. Choose the most appropriate answer from the options given below: