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प्रश्न
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.
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उत्तर
The money measurement concept states that only transactions that can be quantified in monetary terms are recorded in accounts. In other words, no matter how significant an event is to the business, it won't be recorded unless its monetary impact can be measured with reasonable accuracy. This concept ensures that accounting records are consistent, relevant, straightforward, and easy to understand.
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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.
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
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 the complete disclosure principle.
Explain the realisation principle.
Explain the principle of consistency.
Name any four concepts of GAAP.
