Question

True) or (False)? The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.

Answer 1

The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.

False.

Step-by-step explanation:

This accounting assumption is based on the use of money as a unit of measurement. The monetary unit principle assumes that all transactions or economic events recorded in the accounts of an entity can be expressed and measured in monetary terms or currency, like the dollar. The principle ascribes some stability and trust in the monetary units. What is actually described above is the periodicity concept.