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

    Question

    According to which concept, all transactions must be

    measured and recorded in monetary terms?
    A Conventions of consistency Correct Answer Incorrect Answer
    B Money measurement concept Correct Answer Incorrect Answer
    C Convention of conservatism Correct Answer Incorrect Answer
    D Convention of full disclosure Correct Answer Incorrect Answer

    Solution

    The Money Measurement Concept dictates that only transactions that can be expressed in monetary terms should be recorded in the books of accounts. This ensures consistency and clarity in financial reporting.

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