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Ascertainment of profit and loss - class-XI
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American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:
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A
Unit of measurement concept
💡 Explanation:
The unit of measure concept is a standard convention used in accounting, under which all transactions must be consistently recorded using the same currency.
Without a common unit of measure, it would be impossible to produce financial statements.