The accounting principle that assumes that inflation will not take place or will be immaterial is:
A)monetary unit.
B)historical cost.
C)realization.
D)going concern.
E)None of the answers are correct.

Question

Quizplus · Accepted Answer

The monetary unit principle assumes that transactions and events are measured in a specific currency unit, and does not take into account any potential changes in the value of the currency due to inflation or deflation. Therefore, it assumes that inflation will not take place or will be immaterial.

The Accounting Principle That Assumes That Inflation Will Not Take