Recognition of increases in purchasing power of monetary units is inconsistent with the:
A)economic entity assumption.
B)going concern assumption.
C)consistency principle.
D)stable dollar assumption.

Question

Quizplus · Accepted Answer

The stable dollar assumption assumes that the value of the monetary unit remains stable over time. Recognition of increases in purchasing power of monetary units goes against this assumption and therefore is inconsistent with it.

Recognition of Increases in Purchasing Power of Monetary Units Is