Accountancy, asked by TbiaSamishta, 1 year ago

Under Money Measurement Concept which factor can make it difficult to compare the monetary value of one year with the monetary value of another year

Answers

Answered by knickaryan
7
in money measurement concept when we compare the monetary value of different year we don't consider the factors which don't have monetary value,generally we exclude those factors but in the other way some of the parameters like loyality of customer base,trusted employe skills have some indirect effect on the total financial statement and so in monetary value.as these are not recorded in statement so it is always difficult to compare and then where it needs to disclose supplimemtary notes for better gain of understanding.
Answered by aqibkincsem
9

According to the money measurement concept, the events that can be expressed in monetary terms are recorded in the account books.


The adherence to the money measurement concept made i9t difficult to compare the value of money of one period to another.


Because the money measurement concept ignored the small changes that are made in the purchasing power of the money.

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