The assumption that amounts are reported using a common scale (such as the dollar in the United States)is the:
A)Monetary unit assumption.
B)Periodicity assumption.
C)Economic entity assumption.

Question

Quizplus · Accepted Answer

The monetary unit assumption states that financial transactions are recorded and reported in a common unit of measure, such as a currency. This is important for comparability and accuracy in financial reporting.

The Assumption That Amounts Are Reported Using a Common Scale