Home › CBSE Class 11 (Commerce) › Accountancy › Theory Base of Accounting › What is a key limitation of the money measuremen…
What is a key limitation of the money measurement concept?
ACannot record credit deals
BIgnores the business owner
CIgnores change in money value
DCannot record cash sales
Answer & Solution
Correct answer: C. Ignores change in money value
Rupee values bought at different times are added as if equal, though prices change and money loses value.
Related questions
In accounting, what does the term 'convention' connote?What do Generally Accepted Accounting Principles aim to bring?Which existing tax was subsumed under CGST?Which GST component also covers imports of goods and services?Goods moved from Madhya Pradesh to Rajasthan attract which GST?Taxes collected under CGST form the revenue of whom?Who ultimately bears the burden of GST?GST is a tax based on which principle?