The monetary unit assumption assumes that:
A) the business will continue to operate indefinitely.
B) revenues and expenses of a business can be separated into separate time periods.
C) the idea that expressing financial facts and events is meaningful only when they can be expressed in monetary terms.
D) the value of money is not stable.

Question

Quizplus · Accepted Answer

The monetary unit assumption assumes that financial facts and events are meaningful only when they can be expressed in monetary terms. This means that monetary values are the common denominator for measuring and reporting financial information. It does not assume anything about the stability of the value of money or the continued operation of the business.

The Monetary Unit Assumption Assumes That