Question

Explain briefly the accounting principles on which these statements are based . Calibre or quality of management team is not directly disclose in the balance sheet

Answer 1

. Money Measurement : The concept of money measurement states that only those transactions and happenings in an organisation, which can be expressed in terms of money are to be recorded in the book of accounts. Also, the records of the transactions are to be kept not in the physical units but in the monetary units.