The accounting assumption of expressing financial facts and events is meaningful only when they can be expressed in monetary terms is the:
A)matching assumption .
B)dollar value assumption.
C) monetary unit assumption.
D)separate economic entity assumption.

Question

Quizplus · Accepted Answer

The accounting assumption of expressing financial facts and events in monetary terms is known as the monetary unit assumption. It means that only those transactions that can be expressed in monetary terms are recorded in the books of accounts. This assumption assumes that a stable currency is used to measure the financial performance of an entity. The other options are incorrect as the matching assumption refers to the concept of linking expenses to the revenues they help generate, the dollar value assumption is not a recognized accounting assumption, and the separate economic entity assumption means that business transactions of an entity are separate from the personal transactions of its owners.

The Accounting Assumption of Expressing Financial Facts and Events Is