Question

only financial transaction are recorded in accountancy explain the statement​

Answer 1

Answer:

only those transaction and events are recording in accounting which are of a financial character there are so many transaction in a business which are very important of business but which cannot be measured and expressed in terms of money and n such transaction will not be measured.

Explanation:

for example disagreement between the production manager and the sales manager resignation by an able and experienced manager strike by employees and starting of a new business by the other competitor etc. Through these events affect the earning of the business adversely but as no one can measure the effect of so events in terms of money, these will not be recorded in the book of the business.

Answer 2

Answer:

The money measurement concept enables only financial transactions to be recorded in accountancy.

Explanation:

Money measurement concept says that:

1. only transactions that are quantitative terms can be recorded.
2. Those transactions which can be measured, hand - touched & actually seen should be recorded.
3. those transactions that can be measured in terms of monetary standards are recorded.
4. Examples that are not recorded are as follows:

• employee grievances
• employee satisfaction
• employee skill
• working environment
• safety measures
• satisfaction
• dissatisfaction
• resignation

the above examples cannot be measured in terms of monetary standards. Neither measurable in terms of money standards nor quantitative information it is.

Thus, due to the money measurement concepts, only financial transactions or that transactions which can be measured in terms of money are recorded in the books of account.

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