Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which accounting principle states that transactions and events are measured and reported in monetary units?

Monetary Unit Assumption

Matching Principle

Going Concern Assumption

Revenue Recognition Principle

Previous problemNext problem

Verified step by step guidance

Understand the question: The problem is asking which accounting principle involves measuring and reporting transactions in monetary units. This requires knowledge of fundamental accounting principles.

Review the options provided: The options are Monetary Unit Assumption, Matching Principle, Going Concern Assumption, and Revenue Recognition Principle. Each principle has a specific definition and application in accounting.

Define the Monetary Unit Assumption: This principle states that all transactions and events are measured and reported in monetary terms, such as dollars, euros, or other currency units. It assumes that the monetary unit is stable and does not consider inflation or deflation.

Compare the definitions of the other principles: The Matching Principle relates to recognizing expenses in the same period as the revenues they help generate. The Going Concern Assumption assumes that a business will continue operating in the foreseeable future. The Revenue Recognition Principle involves recognizing revenue when it is earned and realizable.

Conclude that the correct principle for measuring and reporting transactions in monetary units is the Monetary Unit Assumption, based on its definition and comparison with the other principles.