Question

Aster Inc. is a multinational company. It has branches in two other countries. However, it converts the transactions of the entire business into US dollars. It also doesn’t record the skill levels and the quality of customer service it provides. Which accounting principle does Aster Inc. comply with?

Aster Inc. complies with the principle of _____.

Answer 1

Monetary unit principle

Step-by-step explanation:

The monetary unit principle refer to a principle in which the business transactions should be recorded in the monetary terms. As non-monetary transactions are not recorded in the accounting. Only that transactions are recorded that are countable

So as per the given case since it converts the business transactions into U.S dollars at the same time it does not record the level of skills and the customer servcie quality

So, this is a monetary unit principle