the monetary unit assumption A : is only used for financial statements of banks. B : provides that the unit of measure fluctuates over time. C : is unimportant in applying the cost principle. D : requires that only transaction data capable of being expressed in terms of money be recorded.

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Business

Lewis

30 December, 05:10

the monetary unit assumption A : is only used for financial statements of banks. B : provides that the unit of measure fluctuates over time. C : is unimportant in applying the cost principle. D : requires that only transaction data capable of being expressed in terms of money be recorded.

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Pugsley · Answer 1

Answer: Option D

Explanation: As per the subject matter of accounting, monetary unit assumption states that only those transactions should be recorded which have a monetary value. In other words, qualitative characteristics like honesty of employees and the organisation would not be taken into consideration.

It assumes that only monetary transactions are reliable for analysis purpose as monetary units remain stable.