Financial statements are prepared on the basis of _________.

actual events which have already happened

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anticipated events

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future events

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probable events

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Solution

The correct option is A actual events which have already happened
Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. transactions and events of financial information. Transaction is prepared on the basis of actual events which have already happened.

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