The unit of measure assumption states that:

a) assets should be recorded at cost.

b) assets equal liabilities plus stockholder's equity.

c) results of business activities should be reported in an appropriate monetary unit.

d) a business's financial reports include only the activities of the business.

Question

Business

Tiara Stokes

16 October, 02:22

The unit of measure assumption states that:

a) assets should be recorded at cost.

b) assets equal liabilities plus stockholder's equity.

c) results of business activities should be reported in an appropriate monetary unit.

d) a business's financial reports include only the activities of the business.

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Answers (1)

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Jorge Randall · Answer 1

c) results of business activities should be reported in an appropriate monetary unit.

Explanation:

The unit of measure concept is a standard convention used in accounting, under which all transactions must be consistently recorded using the same currency so the periods are comparable.

The unit of measure assumption states that:a) assets should be recorded at cost.b) assets equal liabilities plus stockholder's equity.c) results of business activities should be reported in an appropriate monetary unit.d) a business's financial reports include only the activities of the business.