Question

Which of the following is observed under money measurement concept?

a. Transactions of only financial nature are recorded

b. Distinction between capital and revenue expenditure is made

c. Revenue is recognised on its realisation (d) All of the above​

Answer 1

Answer:

The concept of money measurement states that only those transactions and happenings in an organisation which can be expressed in terms of money such as sale of goods or payment of expenses or receipt of income, etc. are to be recorded in the book of accounts. 

All such transactions or happenings which can not be expressed in monetary terms, for example, the appointment of a manager, capabilities of its human resources or creativity of its research department or image of the organisation among people in general do not find a place in the accounting records of a firm. 

In the above case, only the cost of machinery is measurable in terms of money. Hence, only option (D) is acceptable for recording in the books of accounts.

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Answer 2

Answer:

Transactions of only financial nature are recorded