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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
Define the term GAAP.
This principle suggests that every debit has a corresponding and equal credit.
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.
“Firms live forever.” Explain with reference to the concept of accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Every transaction affects at least three accounts." Comment.
Explain any two basic concepts of accounting.
Explain the revenue principle.
Explain the expense principle.
Name any four concepts of GAAP.
