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

Question
Which of the following statements best describes the 'Money Measurement Concept'?
A. Only profitable transactions are recorded.
B. All transactions and events are recorded in terms of money.
C. All assets are recorded at market value.
D. Only cash transactions are recorded.
Answer: Option B
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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Question #1
The 'Independent Director' under Companies Act is appointed for:
A. All companies
B. Listed companies and certain prescribed classes of public companies
C. Small companies
D. Private companies
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Correct Answer: Option B

Explanation:
Independent directors are required for listed companies and specified public companies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Rent paid in advance is considered a(n):
A. Income
B. Liability
C. Asset
D. Expense
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Correct Answer: Option C

Explanation:
Prepaid expenses are considered assets because they provide future economic benefits to the business.
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Question #3
The maximum number of partners in a banking partnership is:
A. 20
B. No limit
C. 10
D. 50
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Correct Answer: Option C

Explanation:
As per Banking Regulation Act, the maximum number of partners for a banking firm is 10.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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