State whether the following statements are True or False with reason:B

1.	State whether the following statements are True or False with reason:Book Keeping records monetary and nonmonetary transactions.
Answer» This statement is False. Correct Statement: Book Keeping records only monetary transactions. Reasons: According to the money measurement concept, in the books of accounts accountant records only those business transactions which are monetary or financial in nature and capable to be expressed in monetary terms. It means the qualitative and quantitative aspects which cannot be measured in terms of money are not recorded in the books of account personal or non-monetary transactions are not recorded, in the books of accounts e.g. giving lift from car to neighbour, drinking tea along with friends in the restaurant, etc. are not recorded in the books of account as these transactions are not monetary in nature.

State whether the following statements are True or False with reason:Book Keeping records monetary and nonmonetary transactions.

Answer»

This statement is False.

Correct Statement: Book Keeping records only monetary transactions. Reasons: According to the money measurement concept, in the books of accounts accountant records only those business transactions which are monetary or financial in nature and capable to be expressed in monetary terms. It means the qualitative and quantitative aspects which cannot be measured in terms of money are not recorded in the books of account personal or non-monetary transactions are not recorded, in the books of accounts e.g. giving lift from car to neighbour, drinking tea along with friends in the restaurant, etc. are not recorded in the books of account as these transactions are not monetary in nature.

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