Monetary Unit Assumption
This principle assumes that financial transactions are recorded in a stable, recognized currency (like USD, GBP, etc.) without adjusting for inflation. It provides consistency in accounting records, ensuring that all reported amounts have a common monetary basis and are comparable over time, despite economic changes or inflation effects.
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Merger Accounting
Merger accounting refers to how the books are consolidated when two companies combine. Depending on the type of merger, acquisition,…
Money Measurement Concept
This accounting concept states that only transactions measurable in monetary terms are recorded in the books. Non-quantifiable events like employee…
Modified Accrual Accounting
Modified accrual accounting blends elements of cash and accrual methods. Commonly used in government and nonprofit entities, it recognizes revenues…
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