PRC-1 · Chapter 1 · Question 32 of 100
Which accounting principle ensures that transactions are recorded strictly in monetary terms, ignoring non-financial factors like employee morale or management expertise?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Money Measurement concept
Explanation
The money measurement concept dictates that only transactions and events capable of being accurately expressed in monetary terms are recorded in the financial books.
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