The Stable-Monetary-Unit Assumption

question 164

Multiple Choice

The stable-monetary-unit assumption:

• A)ensures that accounting records and statements are based on the most reliable data available.
• B)requires all countries to record transactions in U.S.dollars.
• 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 on the accounting records.

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Definitions:

Pith

The soft or spongy tissue in the center of stems in vascular plants, involved in storage and transport of nutrients.

Cortex

The outer layer of an organ or structure, such as the cerebral cortex of the brain or the cortex of the kidney, involved in various functions depending on the organ.

Intercellular Spaces

Gaps or areas between the cells of organisms, which in plants are often filled with air or fluid for the exchange of gases.

Cortex

The outer layer of various organs or body structures, such as the brain, kidneys, and hair.