The monetary unit that a company uses to measure economic transactions is primarily determined by the:
A)stable dollar concept adjusted for inflationary effects.
B)markets in which a company operates.
C)fiscal period a company has chosen.
D)decision by management to elect to use a given currency.

Question

Quizplus · Accepted Answer

The monetary unit used by a company is primarily determined by the markets in which it operates. Companies typically use the currency of the country in which they are located or the currency of the country where they conduct the majority of their business. This ensures that financial statements accurately reflect the economic transactions of the company and are relevant to investors and stakeholders in those markets.

The Monetary Unit That a Company Uses to Measure Economic