The assumption that enables accounting to quantify (measure) economic events is the
A) economic entity assumption.
B) cost principle.
C) historical cost principle.
D) monetary unit assumption.

Question

Quizplus · Accepted Answer

The monetary unit assumption assumes that only transactions that can be measured in monetary terms are recorded in the accounting system. This enables accounting to quantify economic events in a uniform and objective manner.

The Assumption That Enables Accounting to Quantify (Measure) Economic Events