BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The monetary unit principle states that business transactions should only be recorded if they can be expressed in terms of a currency.

Detailed explanation-2: -For example, if a company purchases a building for $100, 000 and holds on to it for 30 years, it will still be reported on the balance sheet for the original purchase price not adjusted for inflation. The building could vary well be worth $1, 000, 000 now because of 30 years of inflation.

Detailed explanation-3: -Money measurement concept is an important accounting concept that is based on the theory that a company should be recording only those transactions that can be measured or expressed in monetary terms on the financial statement.

Detailed explanation-4: -The monetary unit assumption argues that a currency is stable in the long run and does not undergo a loss in its purchasing power. The assumption asserts that the only transactions that should be recorded in books of accounts of a business entity or corporation are those that the entities can measure in monetary terms.

Detailed explanation-5: -The money measurement concept (also called monetary measurement concept) underlines the fact that in accounting and economics generally, every recorded event or transaction is measured in terms of money, the local currency monetary unit of measure.