Question

Which of the following can be recorded in the books of account as per money measurement concept in accounting?

• A. The skills & competencies of the employees in the organization
• B. Salaries expense & pension obligations payable to the employees
• C. The cost of time devoted by the director for the organization at his home or on Sundays
• D. Effect on the organization due to elections in the country

Answer 1

The correct option is B

Salaries expense & pension obligations payable to the employees

According to the money measurement concept, any transaction which can be measured in monetary value and are relevant to business transactions, will be recorded and anything otherwise will be left out of the records.