Genity Inc.,located in Texas,records business transactions in dollars and disregards changes in the value of a dollar over time.Which of the following accounting assumptions does this represent?

Question

Quizplus · Accepted Answer

Genity Inc.'s recording of business transactions in dollars and ignoring changes in the value of a dollar over time is consistent with the monetary unit assumption, which assumes that transactions should be recorded in a stable currency such as the U.S. dollar. This accounting assumption assumes that the value of the dollar remains constant over time, making it easier to compare financial information across periods.