Which of the following is not related with Money Measurement Concept?

All business transaction should be expressed only in Money

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The transactions which cannot be expressed in money, will not be recorded in accounting books

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Business is treated as separate from the proprietor

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None of these

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Solution

The correct option is C Business is treated as separate from the proprietor
Money measurement concept assumes that only those transactions are recorded in the books of account which can be expressed in monetary terms.

Treating business as separate from the proprietor is based on the separate entity concept.

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Similar questions

Q. Transactions and events not capable of being expressed in terms of money are not to be recorded in accounting due to __________.

Q. Money measurement concept of accounting theory is used only when transactions can be expressed in terms of __________.

Q. Money measurement concept implies that every business transaction must be recorded in common unit of measurement i.e. in terms of money only.

Items are recorded only in terms of money. Those cannot be expressed in terms of money are not included in the books of accounts. Which concept does this comply with?

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

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