Monetary Unit assumption
Updated: 3/30/2021
Monetary Unit assumption

Storyboard Text

  • Mom, can I give Lily 15 candy bars in exchange for the teddy bear?
  • Of course
  • I love it
  • Mom, this is the bill I just made
  • Each candy is $1.
  • Emma, you can't write on your accounting book that the doll cost you 15 candies. You should write down the price of the doll. How much is the candy?
  • Then you have to put $15 under cost for the doll.
  • Oh, I see
  • Remember that everything recorded in the books can be measured in monetary units.Although the doll is bought with candies, you have to record its monetary price on your books.