Justify a reason:With reference to the concept of accounting only thos

1.	Justify a reason:With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money.
Answer» The money measurement concept states that a business should only record an accounting transaction if it can be expressed in terms of money. This means that the focus of accounting transactions is on quantitative information, rather than on qualitative information. Thus, a large number of items are never reflected in a company's accounting records, which means that they never appear in its financial statements. Examples of items that cannot be recorded as accounting transactions because they cannot be expressed in terms of money include: Employee skill level Employee working conditions Expected resale value of a patent Value of an in-house brand Product durability

Justify a reason:With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money.

Answer»

The money measurement concept states that a business should only record an accounting transaction if it can be expressed in terms of money. This means that the focus of accounting transactions is on quantitative information, rather than on qualitative information. Thus, a large number of items are never reflected in a company's accounting records, which means that they never appear in its financial statements. Examples of items that cannot be recorded as accounting transactions because they cannot be expressed in terms of money include:

Employee skill level
Employee working conditions
Expected resale value of a patent
Value of an in-house brand
Product durability

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