Question

‗‗Only financial transactions are recorded in accountancy‘‘. Explain this statement

Answer 1

Answer:

Only financial transactions are to be recorded because it is due to money measurement concept, which states that only those transactions are to be recorded in books of account which consist of cash..... So this, will recorded in journal entry book as it has cash transactions.

Answer 2

Answer:

Only Financial Transactions are to be recorded in accountancy because it is due to Money Measurement Concept , which states that only those transactions are to be recorded in books of accounts which are measurable in terms of money. Hence , it is concerned with the Nominal value not the real value .