American business using the US dollar and a European Union country business using the Euro represent which of the following concepts or principles?
A) Cash flow principle
B) Transaction principle
C) Objectivity principle
D) Stable monetary unit principle

Question

Quizplus · Accepted Answer

The stable monetary unit principle assumes that the unit of measure (in this case, currencies like the US dollar and the Euro) remains stable over time, which is crucial for financial reporting and comparison. This principle allows businesses in different countries to record their financial transactions in their respective stable currencies without needing to account for changes in the value of these currencies over time.

American Business Using the US Dollar and a European Union