Question

What is Money Measurement Concept?


Need a clear answer related to the concept. ​

Answer 1

Answer:

money measurement concept states that only those items which can be expressed in terms of monetary terms even it is very much important for the business but if it's not expressed in terms of monetary terms it cannot be entered in books of accounts for eg. conflicts between production and sales manager - it reduces the firm's profit but it cannot be valued in terms of monetary terms it cannot be entered in books of accounts

money measurement concept also states that only in terms of money is required for eg. 10 trucks 300 acre land these are in numbers but even then cannot be recorded as these are not in money value like if we say 10 truck of 50 lacks and 300 acre land of 3 crore now we can record this books of accounts

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Answer 2

The money measurement concept states that only those items which can be expressed in terms of monetary terms even it is very much important for the business but if it's not expressed in terms of monetary terms it cannot be entered in books of accounts for eg. conflicts between production and sales manager - it reduces the firm's profit but it cannot be valued in terms of monetary terms it cannot be entered in books of accounts