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The Money Measurement Concept means:
ACurrency conversion is the priority
BCash transactions take precedence over credit
CA transaction is recorded only if it can be expressed in monetary terms
DReceipts must equal payments per day
Answer & Solution
Correct answer: C. A transaction is recorded only if it can be expressed in monetary terms
1. Per OCR: "A business transaction will always be recorded if it can be expressed in terms of money."
2. Money as common denominator allows aggregating heterogeneous assets.
3. Non-monetary events (e.g. manager appointment) are not recorded as transactions.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2.1 (page 17)_