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What is the Stable Dollar Principle?

4. What is the Stable Dollar Principle?

1. The concept that the financial statements of an organization
2. The underlying accounting principle that the dollar will remain constant across fiscal periods
3. Every business transaction requires recordation in two different accounts
4. Accounting principle for recording revenues and expenses

Answer: B) The underlying accounting principle that the dollar will remain constant across fiscal periods

Explanation:

The stable dollar principle, then, at that point, is the fundamental bookkeeping rule that the meaning of the dollar will stay consistent across financial periods. The expansion rate is thought to be zero. Along these lines, one can make significant examinations of records from sections posted at various marks of time.