Question

According to the Money Measurement Concept which of the following will be recorded in the books of accounts?

• A. Quality control in business
• B. Commission payable to salesman
• C. Extra profits made due to introduction of a budgetary control system
• D. All of the above

Answer 1

Answer: (B)

Commission payable to salesman

According to money measurement concept, the commission payable to salesman will be recorded in the books of accounts.

Quality control in business, extra profits made due to introduction of a budgetary control system are qualitative in nature and cannot be recorded, as according to money measurement concept, only those transactions which can be measured in terms of money are recorded in the books of accounts.