Question

3. Appointment of a new managing director is not recorded in the books of accounts.
Why?
​

Answer 1

Answer:

In simple words answer to your question is

It cannot be recorded in the books of accounts because of money measurement concept.

The concept of money measurement states that only those transactions and happenings in an organisation which can be expressed in terms of money such as sale of goods or payment of expenses or receipt of income, etc. are to be recorded in the book of accounts.

It is impossible to measure somebody's appointment in monetary value

Hence it cannot be recorded