The Stable-Monetary-Unit Assumption of Accounting

question 31

Multiple Choice

The stable-monetary-unit assumption of accounting:

• A)ensures that accounting records and statements are based on the most reliable data available.
• B)holds that the entity will remain in operation for the foreseeable future.
• C)maintains that each organization or section of an organization stands apart from other organizations and individuals.
• D)enables accountants to ignore the effect of inflation in the accounting records.

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Definitions:

Strategic Defense Initiative

A proposed missile defense system announced by President Ronald Reagan in 1983, intended to protect the United States from attack by ballistic strategic nuclear weapons.

Camp David Accords

A peace treaty between Israel and Egypt brokered by the United States in 1978, leading to significant steps towards peace in the Middle East.

Oliver North

A United States Marine Corps officer involved in the Iran-Contra affair during the Reagan administration.