Question

which of the following transactions is not recorded in the book of accounts unless it is measurable in terms of money
a. realization concept
b. actual concept
c. money measurement concept
d. cost concept ​

Answer 1

Realization concept

Answer 2

The correct answer is OPTION C: Money Measurement Concept.

• According to the concept of money measurement, only those processes and events in an organization that can be expressed in money, such as the sale of goods, payment of expenses, or receipt of income, should be documented in the book of accounts.
• Accounting records do not include non-monetary transactions or events like management appointments, human resource capabilities, research department innovation, or the organization's public image.
• Another advantage of the money measuring method is that transaction records are kept in monetary units rather than physical ones.