The assumption that means accountants ignore inflation is:
A) the prudence assumption.
B) the stable monetary unit assumption.
C) the going concern assumption.
D) the monetary assumption.

Question

Quizplus · Accepted Answer

The assumption that means accountants ignore inflation is the stable monetary unit assumption. This assumption assumes that the monetary unit used in financial statements is stable and does not change in value due to inflation or deflation. Therefore, accountants do not adjust the financial statements for changes in purchasing power caused by inflation.

The Assumption That Means Accountants Ignore Inflation Is