For convenience, accountants assume that the value of money is stable or that changes in its value are not great enough to affect the recorded financial data.

Question

Quizplus · Accepted Answer

This assumption is known as the monetary unit assumption and is a fundamental concept in accounting. It allows for easier record-keeping and financial reporting, but may not accurately reflect the effects of inflation or currency fluctuations on the business.

For Convenience, Accountants Assume That the Value of Money Is