Using the Australian dollar to measure accounting transactions allows comparisons across periods.To which financial statement assumption does this relate?
A) accounting entity
B) monetary
C) historical cost
D) going concern.

Question

Quizplus · Accepted Answer

The use of the Australian dollar as a unit of measure demonstrates the monetary assumption, which assumes that transactions are recorded in a stable currency to enable meaningful comparisons across time.

Using the Australian Dollar to Measure Accounting Transactions Allows Comparisons