Question

Identified and measured economic events should be recorded in _________order.

• A. Chronological order
• B. Valuation order
• C. Relevance order
• D. All of the above

Answer 1

The correct option is A Chronological order

This is very much clear from the definition of accounting that all business transactions must be recorded in books of account in the chronological order.

As and when an economic event is identified and measured, it has to be recorded in the books.

So, if a sales is effected on 29th March, it has to be recorded on the same day and if purchase is effected on 31st March, it has to be recorded on 31st March itself.