The unit of measure concept
A) is only used in the financial statements of manufacturing companies
B) is not important when applying the cost concept
C) requires that different units be used for assets and liabilities
D) requires that economic data be reported in yen in Japan or dollars in the United States

Question

Quizplus · Accepted Answer

The unit of measure concept requires economic data to be reported in a common unit of measure, such as yen in Japan or dollars in the United States. This concept applies to all types of companies, not just manufacturing companies, and is important when applying the cost concept as well as other accounting concepts. There is no requirement to use different units for assets and liabilities.

The Unit of Measure Concept