A firm receives an order for goods, but it would not be included in the sales figure. This is due to which concept?

Money Measurement

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Matching

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Business Entity

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Consistency

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Solution

The correct option is A
Money Measurement

Money Measurement concept says that only economic events or those that can be expressed in terms of money have to be recorded.

Getting an order is not economic event, but selling it is an economic event.

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Similar questions

Q. A firm receives an order for goods, but it would not be included in the sales figure. This is due to concept .

Q. If a firm receives an order for goods, it would not be included in the sales figure owing to_____________concepts.

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Complete the following work sheet:

(i)	If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
(ii)	The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
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(iv)	The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v)	A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
(vi)	If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
(vii)	The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ________ concept.

Complete the following worksheet

(i) If a firm believes that some of its debtors may default, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___ concept.

(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___ concept.

(iii) Everything a firm owns, it also owns out to somebody. This coincidence is explained by the ___ concept.

(iv) The ___ concept states that if the straight-line method of depreciation is used in one year, then it should also be used in the next year.

(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of ___

(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to ___

(vii) The management of a firm is remarkably incompetent, but the firm's accountants cannot take this into account while preparing the book of accounts because of ___ concept.

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A firm receives an order for goods, but it would not be included in the sales figure. This is due to which concept?

The correct option is A Money Measurement Money Measurement concept says that only economic events or those that can be expressed in terms of money have to be recorded. Getting an order is not economic event, but selling it is an economic event.

The correct option is A
Money Measurement

Money Measurement concept says that only economic events or those that can be expressed in terms of money have to be recorded.

Getting an order is not economic event, but selling it is an economic event.