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    Question

    Due to which concept, accounting does not record

    non-financial transactions?
    A Going concern concept Correct Answer Incorrect Answer
    B Money measurement concept Correct Answer Incorrect Answer
    C Accrual concept Correct Answer Incorrect Answer
    D Cost concept Correct Answer Incorrect Answer

    Solution

    Accounting does not record non-financial transactions because of the money measurement concept . This concept states that only transactions that can be expressed in monetary terms can be recorded in the accounting records. Non-financial transactions, such as the appointment of a new manager or the development of a new product, cannot be expressed in monetary terms and therefore are not recorded in the accounting records.

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