What is the money measurement concept? Which one factor can make it difficult to compare the monetary values of one year with the monetary values of another year?

Explanation

The construct of cash, measure states that solely those events which will be expressed in financial terms are recorded within the books of accounts.


Numerous transactions have an effect on the business in varied ways in which. However, recording, classification and quality, report of those heterogeneous business dealings needs that these transactions be expressed in terms of common unit of measure. The construct of cash measure is that the records of the transactions are to be unbroken not within the physical units however within the unit.




E.g., ten machineries of Rs.1,00,000 every are purchased and this event is recorded within the books with a complete quantity of Rs.1,00,000.


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