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 U.S.

Question

Quizplus · Accepted Answer

The unit of measure concept requires that economic data be reported in a stable monetary unit, such as yen in Japan or dollars in the U.S. It is applicable to all types of companies, not just manufacturing, and is important when applying the cost concept. There is no requirement for different units to be used for assets and liabilities.

The Unit of Measure Concept