Monthly Archives: October 2019

What is Money Measurement Concept

money measurement concept

Money Measurement Concept The money measurement concept states that a corporation should only report those accounting transactions that can be represented in terms of money. It means that the centre of accounting transactions is on quantitative data, preferably than on qualitative information. Thus, a high number of items are nevermore …

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Factors determining the credit policy

credit policy image

The credit policy is one of the essential factors determining both the quantity and quality of accounts receivables. Various factors determine the size of the investment a company makes in accounts receivables. They are, for instance: i. The effect of credit on the volume of sales; ii. Credit terms; iii. …

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Difference between imputed costs and capitalised costs

Imputed Costs: Imputed costs are those costs which do not involve any cash outlay. For example: interest on capital, it not an expense actually paid in monetary term. It is just a book entry. Capitalised Costs: These costs are initially recorded as assets but subsequently treated as expenses. Main examples …

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