Money measurement concept is an important accounting concept that is based on the theory that a company should be recording only those transactions that can be measured or expressed in monetary terms on the financial statement.
The money measurement concept in accounting states that financial transactions should only be recorded if they can be quantified in monetary terms. This concept ensures that only transactions that have a significant impact on the financial position of a business are recorded in its financial statements. It helps maintain the reliability and comparability of financial information.
