The monetary unit concept prevents some relevant information from being recorded in the accounting records.

Question

Quizplus · Accepted Answer

The monetary unit concept assumes that all transactions can be expressed in a common currency and recorded in the accounting records. This means that non-monetary assets and liabilities such as goodwill, brand value, and employee morale cannot be recorded in the accounting records. Additionally, inflation can also affect the accuracy of financial statements prepared using the monetary unit concept.

The Monetary Unit Concept Prevents Some Relevant Information from Being