1
Question
According to the money measurement concept, the following will be recorded in the books of accounts of the business ____________________.
According to the money measurement concept, the following will be recorded in the books of accounts of the business ____________________.
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Solution
The correct option is C Value of plant and machinery
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, the value of plant and machinery, being expressable in terms of money, will be recorded, and the others cannot be recorded.
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, the value of plant and machinery, being expressable in terms of money, will be recorded, and the others cannot be recorded.
Hence, the value of plant and machinery, being expressable in terms of money, will be recorded, and the others cannot be recorded.
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