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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
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, cost of a particular period should be charged from the revenue of same period only.
“Firms live forever.” Explain with reference to the concept of accounting.
“Accounts should disclose all material information” (with reference to the concept of accounting). Justify either for or against by giving two reasons.
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
“The capital provided by the owner is a liability of the firm.” Answer with reference to the concept of Accounting.
"Every transaction affects at least three accounts." Comment.
Explain the money measurement principle of accounting.
“The principle of full disclosure and principle of materiality are contradictory.” Comment.
