Introduction to Accounting · Class 11 · CBSE · Commerce Accountancy
Which of the following events would be recorded in the books of accounts according to the money measurement concept?
Practice question from Introduction to Accounting (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-F98844
Which of the following events would be recorded in the books of accounts according to the money measurement concept?
- A.Resignation of a very capable and experienced general manager
- B.Damage of inventory worth Rs 50,000 due to a sudden fireCorrect answer
- C.Signing of a potential joint venture agreement with no immediate monetary exchange
- D.A major dispute between the production workers and the plant supervisor
Solution
Only transactions and events that can be expressed in terms of money are recorded in accounting. Damage of inventory worth Rs 50,000 has a direct monetary impact.
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