Team Shirts purchased $2,000 worth of T-shirts from a company in Guatemala.Team Shirts recorded the value of the transaction in U.S.dollars.Which accounting rule applies to this situation?

Question

Quizplus · Accepted Answer

The monetary-unit assumption requires companies to record transactions in a common monetary unit, such as U.S. dollars, which is relevant in this transaction as it involves the purchase of goods from a foreign country.

Team Shirts Purchased $2,000 Worth of T-Shirts from a Company