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What impact does inflation have on the monetary unit assumption?
Wiki User
∙ 10y ago
Inflation has a lot of impact on monetary unit assumption. Inflation greatly reduces the value of a monetary unit and acts as a hidden tax on consumers.
Wiki User
∙ 10y ago
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What is the monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What is the Chinese monetary unit called?
Chinese monetary unit - the monetary unit in the People's Republic of China monetary unit - a unit of money kwai, yuan - the basic unit of money in China jiao - 10 jiao equal 1 yuan in China fen - 100 fen equal 1 yuan in China
What is the monetary unit for Jordan?
Dinar
What is the monetary unit for Angola?
Kwanza
What is Russia's monetary unit?
kopek
What are the basic assumptions in accounting?
Economic Entity Assumption Going Concern Assumption Monetary Unit Periodicity(Time Period) Assumption
Example of stable monetary unit concept?
allows accountants to ignore the effect of inflation in the accounting records.
What is monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What is the monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
Why has Brazil had so many different monetary units?
because the very inflations . and the inportant information about monetary units is in brazil , people speak portuguese . brazil' s monetary unit is the real . since 1986 brazil has had six difeffent monetary units , that is because of the inflation
What is the monetary unit in Columbia?
Monetary unit: Colombian Peso
What is the monetary unit for Fiji?
FJD is the monetary unit for Fiji.
What are the most important accounting principles?
There are many accounting principles and many are very important in their own way. The top three most important principles are: Economic Accounting Principle, Monetary Unit Assumption, and Time Period Assumption.
What is unidad de fomento?
Unidad de Fomento (UF) is a monetary unit used in Chile that is indexed to inflation. It is mainly used for real estate transactions and loans. The value of UF is adjusted daily based on inflation rates.
What was UK monetary unit in 1939?
Monetary unit: Pound sterling
What is monetary unit of Thailand?
The baht or satang is the monetary unit for Thailand.
What is monetary unit of Morocco?
The monetary unit of morocco is called a Moroccan Dirham.
