Answer: D. Accrual and going concern

Explanation:
The two fundamental assumptions in the preparation of financial statements are the accrual concept and the going concern concept. The accrual concept assumes that transactions are recorded when they occur, regardless of when the cash is received or paid, while the going concern concept assumes that the business will continue to operate indefinitely. Other concepts like entity and materiality are important but do not constitute the fundamental assumptions required for financial statements.