The accounting convention of _____ ignores the effects of price level changes.
A)recognition
B)matching
C)stable monetary unit
D)cost benefits

Question

Quizplus · Accepted Answer

The stable monetary unit convention assumes that the currency used in accounting remains constant over time and ignores the effects of inflation or changes in the general price level. Therefore, it does not reflect the true economic value of the assets and liabilities reported in the financial statements.

The Accounting Convention of _____ Ignores the Effects of Price