According to the Monetary Unit Assumption, how should Cecilia Tubular value her enamel pins purchased at $0.10 each?

The Monetary Unit Assumption posits that businesses should record and report their financial transactions using a consistent unit of currency and that this unit remains stable over time. In this context, it encourages businesses to value their assets at the amount they were originally purchased for, rather than adjusting for fluctuations in market value or other factors.

Cecilia Tubular should value her enamel pins at their purchase price of $0.10 each because this reflects the actual transaction that took place. This method provides a clear and straightforward way to account for the investment made in acquiring the enamel pins. Valuing them at a different amount would lead to inconsistencies and potential misrepresentations in financial statements, as it would not accurately reflect the initial economic activity related to the pins.

Therefore, valuing the enamel pins at their purchase price aligns with the principles of the Monetary Unit Assumption, ensuring that financial records maintain consistency and reliability based on actual cash transactions.