Accounting principles and Policies
6. Money Measurement Concept:
As per this concept, only monetary transactions are recorded in the books of accounts. The transactions, which cannot be expressed in monetary terms, do not find place in the books of accounts, although they may be very useful for the business.
Some people think that the Accounting gives a full picture of business. It is never true, because in Accounting, only monetary items are recorded; no record is made for non-monetary items. Thus accounting does not give the picture of non- monetary items.
It is due to this concept that:
Recording in Terms of Money,
Recording only Monetary Items
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