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      Question

      Which of the following is an example of a non-monetary

      item that would not be recorded in the financial statements under the Money Measurement Concept?
      A Land owned by the company Correct Answer Incorrect Answer
      B Goodwill of the company Correct Answer Incorrect Answer
      C Patents owned by the company Correct Answer Incorrect Answer
      D Cash in the company’s bank account Correct Answer Incorrect Answer

      Solution

      Goodwill is an intangible asset that represents the value of a company’s brand, reputation, and customer relationships. Goodwill is not a physical asset, and its value cannot be easily measured in monetary terms. Therefore, under the Money Measurement Concept in Accounting, goodwill is considered a non-monetary item that would not be recorded in the financial statements.

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