The Stable-Monetary-Unit Assumption

question 16

Multiple Choice

The stable-monetary-unit assumption:

• 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:

Self-Actualization

The realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Gestalt Psychologist

A psychologist who studies how people perceive and process information as whole forms rather than as separate component parts, emphasizing the context and patterns in learning and perception.

Physiological Needs

Basic physical requirements for human survival, such as food, water, and shelter.

Trait Theory

A psychological approach that attempts to study personality through the identification and analysis of consistent patterns of behavior and thought.