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 cash transactions are recorded.

C. Only profitable transactions are recorded.

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

Answer: Option D

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.

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Question #1

A 'Supporting Voucher' is also known as:

A. Transfer voucher

B. Source document

C. Cash voucher

D. Journal voucher

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Correct Answer: Option B

Explanation:
Source documents like bills, receipts support the transaction.

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Question #2

Bank charges debited by the bank will be ________ when starting with an overdraft balance as per Pass Book.

A. Added

B. Ignored

C. Multiplied

D. Deducted

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Correct Answer: Option D

Explanation:
Bank charges increase the overdraft in the pass book. To arrive at the cash book overdraft (which is lower since it missed the charge), it must be deducted.

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Question #3

Integration of State Treasuries with PFMS achieves which of the following?

A. Complete elimination of state governments

B. Tracking of Centrally Sponsored Schemes (CSS) funds up to the implementing agencies

C. Privatization of public banks

D. Conversion of cash into digital currency

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Correct Answer: Option B

Explanation:
Treasury integration allows the central government to track unspent balances and actual expenditure of funds granted to states for various schemes.

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