A basic assumption of accounting assumes that the dollar is
A) unrelated to business transactions.
B) a poor measure of economic activities.
C) the common unit of measure for all business transactions.
D) useless in measuring an economic event.

Question

Quizplus · Accepted Answer

The basic assumption of accounting is that the dollar is the common unit of measure for all business transactions. This means that all financial transactions are recorded and reported in dollars, which allows for consistency in financial reporting and analysis.

A Basic Assumption of Accounting Assumes That the Dollar Is