The Accounting Concept Which Asserts That Money Is the Common

question 35

Multiple Choice

The accounting concept which asserts that money is the common measurement unit for economic activity is the:

• A)business entity concept
• B)monetary unit concept
• C)going concern concept
• D)dollar-value concept

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Definitions:

Price Level

represents the average of current prices across the entire spectrum of goods and services produced in the economy.

Net Capital Outflows

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners; indicating the amount of money leaving a country to invest abroad minus the amount coming in.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Foreign Assets

Assets such as stocks, bonds, real estate, or businesses that are located in countries outside the investor's home country.