Which of the following statements best describes the 'Money Measurement Concept'? MCQ with Answer and Explanation

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Which of the following statements best describes the 'Money Measurement Concept'?

A. All assets are recorded at market value.

B. Only profitable transactions are recorded.

C. All transactions and events are recorded in terms of money.

D. Only cash transactions are recorded.

Answer: Option C

Solution (By JKSSB Mock Tests)

The money measurement concept states that only those transactions which can be expressed in monetary terms are recorded in the books of accounts.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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In the context of GST, IGST is levied on:

A. Intra-state supply

B. Import of services only

C. Export of goods

D. Inter-state supply

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Correct Answer: Option D

Explanation:
Integrated GST (IGST) is levied on inter-state supply of goods and services, including imports, under the GST regime in India.

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Question #2

In financial management, the 'Cost of Capital' is:

A. The minimum return required by investors

B. The total cost of setting up a business

C. The interest paid on loans

D. The depreciation cost

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Correct Answer: Option A

Explanation:
The cost of capital is the minimum rate of return that a company must earn on its investments to satisfy its investors and creditors.

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Question #3

The 'Sufficient Appropriate Audit Evidence' means:

A. Only quality

B. Only quantity

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Correct Answer: Option C

Explanation:
Sufficient relates to quantity, appropriate to quality.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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