The Unit of Measure Assumption States That

question 72

Multiple Choice

The unit of measure assumption states that:

• A)results of business activities should be reported in an appropriate monetary unit.
• B)assets should be recorded at cost.
• C)a business's financial reports include only the activities of the business.
• D)assets equal liabilities plus stockholder's equity.

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Definitions:

Personally Relevant

Pertaining directly to or having a direct impact on an individual's personal life, interests, or situations.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.

Chunks

In cognitive psychology, chunks refer to units of information grouped together and stored in the memory for easier recall.

Magic Number

Often referencing Miller's law, which suggests the number 7 (plus or minus 2) represents the amount of information a typical human memory can hold in the short term.