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Question
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
Options
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
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Solution
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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