In its annual report the FCX Company reported the value of its ending inventory,rather than the number of units on hand.This best describes an application of the:

Question

Quizplus · Accepted Answer

The monetary unit concept assumes that only transactions that can be expressed in monetary terms are recorded in financial statements. By reporting the value of its ending inventory instead of the number of units on hand, FCX is adhering to this concept by valuing its inventory in dollars rather than in physical quantities.

In Its Annual Report the FCX Company Reported the Value