BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -According to the money measurement concept, any transaction which cannot be measured in monetary value will not be recorded in the books of account.
Detailed explanation-2: -The money measurement concept states that a business should only record an accounting transaction if it can be expressed in terms of money. This means that the focus of accounting transactions is on quantitative information, rather than on qualitative information.
Detailed explanation-3: -All the instances which cannot be measured in terms of money are called non-economic events.
Detailed explanation-4: -According to the money measurement concept, only economic events, i.e, those transactions which can be measured in terms of money are recorded in books of account.