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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
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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.
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संबंधित प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
Explain the need for GAAP for accounting.
Explain the concept of The Dual Aspect Principle.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
Explain Matching Concept of GAAP.
"Every transaction affects at least three accounts." Comment.
Explain the revenue principle.
Explain the realisation principle.
Explain the principle of consistency.
