The assumption that the unit of measure remains sufficiently constant over time is part of the
A) economic entity assumption.
B) cost principle.
C) historical cost principle.
D) monetary unit assumption.

Question

Quizplus · Accepted Answer

The assumption that the unit of measure remains sufficiently constant over time is part of the monetary unit assumption. This assumption means that financial transactions and events are only measured in a single unit of currency (e.g. dollars, euros) and this unit remains constant and unchanged over time. This is important because it allows for easy comparison of financial information over time and across different companies.

The Assumption That the Unit of Measure Remains Sufficiently Constant