An American business records transactions using the U.S.dollar and disregards fluctuation in the buying power of the dollar over time.This represents the:
A) entity concept.
B) going-concern concept.
C) faithful representation principle.
D) stable monetary unit principle.

Question

Quizplus · Accepted Answer

The stable monetary unit principle assumes that the value of the U.S. dollar remains stable over time and disregards inflation or changes in buying power. This principle allows for easier record-keeping and accounting, but may not accurately reflect the true financial position of the business.

An American Business Records Transactions Using the U