Question

Accounting does not record non financial transactions because of

Answer 1

Explanation:

Any transaction which is not convertible in monetary terms, will not be recorded in financial statements even if it effects the results of the business materiality. Therefore, non- monetary transactions are not recorded in books of accounts.

Answer 2

Answer:

Any transaction which is not convertible in monetary terms, will not be recorded in financial statements even if it effects the results of the business materiality. Therefore, non- monetary transactions are not recorded in books of accounts

Explanation:

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.

All such transactions or happenings which can not be expressed in monetary terms, for example, the appointment of a manager, capabilities of its human resources or creativity of its research department or image of the organisation among people in general do not find a place in the accounting records of a firm.

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