New Enroll in RBI Grade B New Batch - Starts on May 21

    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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