The accounting profession follows a set of guidelines for measurement and disclosure of the financial information termed as the Generally Accepted Accounting Principles (GAAP).
a) Describe what the Stable-Monetary-Unit Assumption is and give an illustration of its application.
b) Transaction analysis outcomes in the development of a journal entry. A building is purchased for $535,000. Name the accounts impacted and how using the format account name/debit or credit/dollar amount and describe how the Accounting Equation is impacted.