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Measurement discipline  

  • Only those transactions, which can be measured in terms of money, are recorded in books of accounts.

Human Resource Asset (loyal employees) can not be recorded, even though they are the most important asset of enterprise.

  • Money as a measurement scale; has no universal denomination. It takes the shape of the currency of the ruling country.
  • Foreign exchange transactions are therefore converted in terms of Ruling currency by use of exchange rates.
  • Quantitative information is also required in many cases, but such information is only supplementary to the monetary information.

Elements of Measurement Discipline                     

(a) Identification of Objects and Events i.e. transactions and events

(b) Selection of Standards or Scale i.e. money                                                              

(c) Evaluation of Dimension of measurement scale

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