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"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 else can I help you with?
What impact does inflation have on the monetary unit assumption?
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.
What are the basic assumptions in accounting?
Economic Entity Assumption Going Concern Assumption Monetary Unit Periodicity(Time Period) Assumption
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 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 monetary unit of Thailand?
The baht or satang is the monetary unit for Thailand.
What was UK monetary unit in 1939?
Monetary unit: Pound sterling
What is monetary unit of Morocco?
The monetary unit of morocco is called a Moroccan Dirham.
What is name of former monetary unit of Finland?
what is the former monetary unit of finland
What is the English monetary unit?
They may still use pounds as monetary value
How do you spell Philippine monetary unit?
The Philippine monetary unit is spelled as "peso."
