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Question
According to money measurement concept, the following will be recorded in the books of account_________________.
According to money measurement concept, the following will be recorded in the books of account_________________.
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Solution
The correct option is C Value of the building.
The concept of money measurement states that only those transactions and
happenings in an organisation which can be expressed in terms of money
such as sale of goods or payment of expenses or receipt of income, etc. are to
be recorded in the book of accounts. All such transactions or happenings
which can not be expressed in monetary terms, for example, the appointment
of a manager, do not find
a place in the accounting records of a firm. Another important aspect of the concept of money measurement is that
the records of the transactions are to be kept not in the physical units but in
the monetary unit.Hence, in the above case, only value of building will be recorded in the books of accounts.
The concept of money measurement states that only those transactions and happenings in an organisation which can be expressed in terms of money such as sale of goods or payment of expenses or receipt of income, etc. are to be recorded in the book of accounts.
All such transactions or happenings
which can not be expressed in monetary terms, for example, the appointment
of a manager, do not find
a place in the accounting records of a firm.
Another important aspect of the concept of money measurement is that
the records of the transactions are to be kept not in the physical units but in
the monetary unit.
Hence, in the above case, only value of building will be recorded in the books of accounts.
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