Monetary Unit Assumption Quiz

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Which assumption requires that companies include in the accounting records only transaction data that can be expressed in money terms?

Economic entity assumption

Relevance assumption

Time period assumption

Monetary unit assumption (correct)

What does the economic entity assumption require?

Combining the activities of the entity with its owner's activities

Excluding the activities of the entity from financial records

Allowing the entity to merge with other economic entities

Keeping the activities of the entity separate from its owner's activities (correct)

In a proprietorship, who is often the manager/operator of the business?

Owner (correct)

Shareholder

Creditor

Investor

What does the monetary unit assumption prevent from being included in accounting records?

Non-monetary information Signup and view all the answers

What is an economic entity?

Any organization or unit in society Signup and view all the answers

An economic entity can be any organization or unit in ______

society Signup and view all the answers

The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in ______ terms

money Signup and view all the answers

An economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its ______

owner Signup and view all the answers

Sally Rider, owner of Sally’s Boutique, must keep her personal living costs separate from the expenses of the ______

boutique Signup and view all the answers

A business owned by one person. The owner is often the manager/operator of the ______

business Signup and view all the answers

Monetary Unit Assumption Quiz

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Questions and Answers

Which assumption requires that companies include in the accounting records only transaction data that can be expressed in money terms?

What does the economic entity assumption require?

In a proprietorship, who is often the manager/operator of the business?

What does the monetary unit assumption prevent from being included in accounting records?

What is an economic entity?

An economic entity can be any organization or unit in ______

The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in ______ terms

An economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its ______

Sally Rider, owner of Sally’s Boutique, must keep her personal living costs separate from the expenses of the ______

A business owned by one person. The owner is often the manager/operator of the ______

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