Advertisements
Advertisements
प्रश्न
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
विकल्प
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
Advertisements
उत्तर
Money measurement concept
Explanation:
The money measurement concept states that only transactions and events that can be measured in monetary terms are recorded in the accounting records. Non-monetary items, such as employee skills or customer satisfaction, are not recorded in the financial statements because they cannot be quantified in terms of money.
APPEARS IN
संबंधित प्रश्न
What does GAAP stand for in Accounting?
Explain the need for GAAP for accounting.
GAAP stands for ______.
"Firms live forever." Explain with reference to the concept of accounting.
Name the basic principles of accounting.
Explain 'Matching Concept' of GAAP.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the money measurement principle of accounting.
Explain matching principle of accounting.
Explain the complete disclosure principle.
