Question

Name the concept according to which only financial transactions are recorded

Answer 1

Bookkeeping..


I wish that it is correct........

Answer 2

MONEY MEASUREMENT CONCEPT

Money is the only practical unit of measurement that can be employed to achieve homogeneity of financial data , so accounting records only those transactions which can be expressed in terms of money though quantitative records are also kept.

Limitations of Money measurement concept

1) It restricts the scope of accounting because it is not capable of recording transactions which cannot be expressed in terms of money.

2) It does not take care of the effects of inflation because it assumes a stability of money measurement unit.