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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
Explain the need for GAAP for accounting.
GAAP stands for ______.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
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.
What is business entity concept of accounting?
Name the basic principles of accounting.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
Explain the revenue principle.
Explain the realisation principle.
