Question 12
Accounting Concepts and Conventions"Financial statements do not disclose all information users need to know about a firm." This is the concept of
- A.consistency
- B.money measurement
- C.dual aspect
- D.materiality
Show the answer and explanation
Answer: B (money measurement)
Explanation
Under money measurement only items that can be valued in money are recorded, so things like staff skill or morale never appear in the accounts.