Explain the limitation of money measurement Concept???Briefly
Ronit,
The limitations of money measurement concept lies in the fact that even though if an event is very important but cannot be expressed in monetary terms than it will not be recorded in the books of accounts and secondly the value of money 10 years down the line is different from the value today which is assumed to be static as per this principle.
Also, we have discussed this topic in our class. You can either watch the recording of the class or browse through the study material using link provided below for a detailed understanding.
https://www.meritnation.com/cbse/class11-commerce/studymaterial/accountancy/financial-accounting-part-i/theory-base-of-accounting/394_2364_14065#slide1_Principles and Concepts of Accounting
Keep posting!!
The limitations of money measurement concept lies in the fact that even though if an event is very important but cannot be expressed in monetary terms than it will not be recorded in the books of accounts and secondly the value of money 10 years down the line is different from the value today which is assumed to be static as per this principle.
Also, we have discussed this topic in our class. You can either watch the recording of the class or browse through the study material using link provided below for a detailed understanding.
https://www.meritnation.com/cbse/class11-commerce/studymaterial/accountancy/financial-accounting-part-i/theory-base-of-accounting/394_2364_14065#slide1_Principles and Concepts of Accounting
Keep posting!!