The monetary unit assumption requires that all dollar amounts be rounded to the nearest dollar.

Question

Quizplus · Accepted Answer

The monetary unit assumption states that financial transactions must be recorded and reported using a common monetary unit, such as dollars in the United States. However, there is no requirement to round dollar amounts to the nearest dollar. In fact, many financial statements show dollar amounts to the nearest penny.

The Monetary Unit Assumption Requires That All Dollar Amounts Be