Which Generally Accepted Accounting Principle states that ""A stable currency is going to be the unit of record""?

Question

Business

Yael Carey

14 November, 06:40

Which Generally Accepted Accounting Principle states that ""A stable currency is going to be the unit of record""?

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Answers (1)

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Smirk · Answer 1

The monetary unit principle states that "A stable currency is going to be the unit of record".

Explanation:

One of the important generally accepted accounting principles is the Monetary unit principle. This principle states that record those business dealings that can be conveyed in terms of a currency. This means anything that cannot be quantified should not be recorded a businesses transactions. The non-quantifiable items include customer service, motivation, management skills, etc. Over time, money has been used as a stable form of currency in accounting.