Question

According to money measurement concept which of the following will be recorded in the books of account?

• A. Health of the chairman of the company
• B. Quality control in the business
• C. Value of the building
• D. All of the above

Answer 1

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.

Hence, amongst the above, only value of building shall be recorded in the books of accounts.