📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    The accounting principle that states that only those

    transactions which can be expressed in monetary terms should be recorded in the books of accounts is the:
    A Business Entity Concept Correct Answer Incorrect Answer
    B Money Measurement Concept Correct Answer Incorrect Answer
    C Going Concern Concept Correct Answer Incorrect Answer
    D Dual Aspect Concept Correct Answer Incorrect Answer

    Solution

    The Money Measurement Concept states that accounting only records those events and transactions that can be measured and expressed in monetary terms. Non-monetary events, like employee morale or management reputation, however significant, are not recorded.

    Practice Next
    More Accounts Questions
    ask-question