Genity Company records business transactions in dollars and disregards changes in the value of a dollar over time.Which of the following accounting assumptions does this represent?
A)economic entity assumption
B)going concern assumption
C)accounting period assumption
D)monetary unit assumption

Question

Quizplus · Accepted Answer

This represents the monetary unit assumption, which assumes that transactions are recorded in a common unit of currency and that the value of the currency is stable over time. It ignores inflation or deflation and changes in the value of money over time.

Genity Company Records Business Transactions in Dollars and Disregards Changes