The Assumption That the Unit of Measure Remains Sufficiently Constant

question 238

Multiple Choice

The assumption that the unit of measure remains sufficiently constant over time is part of the

• A) economic entity assumption.
• B) cost principle.
• C) historical cost principle.
• D) monetary unit assumption.

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Definitions:

Modified Duration

A measure of the sensitivity of a bond’s price to changes in interest rates, indicating how much the price will change as interest rates move.

Semiannually

Occurring or payable twice a year.

Steel Pier

A historic oceanfront amusement park located in Atlantic City, New Jersey, known for its entertainment offerings.

Modified Duration

A measure that quantifies the sensitivity of a bond's price to changes in interest rates, adjusted for the bond's yield.