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Question
____________ is an accounting concept states that only monetary transactions are recorded in the books of accounts.
____________ is an accounting concept states that only monetary transactions are recorded in the books of accounts.
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Solution
The correct option is D Money measurement
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.
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.
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