Which accounting principle is followed under both single entry system and double entry system of accounting?
Answers
Answer:
Money Measurement Concept.
Explanation:
Money Measurement Concept.
In the single entry system of accounting, the money measurement concept is used and the dual aspect concept is disregarded.
According to the money measurement principle, an accounting transaction should only be recorded if it can be described in terms of money. This indicates that quantitative information, rather than qualitative information, is the primary emphasis of accounting activities.
Every financial transaction that occurs inside an entity is documented. The notion of money measurement is useful for creating financial statements. It is simpler to compare the outcomes of one period to another when more transactions are recorded. It serves as the foundation for legal proof.
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