Multiple choice

According to money measurement concept, currency transactions and events are recorded in the books of accounts

  1. in the ruling currency of the country in which transaction takes place

  2. in the ruling currency of the country in which books of account are prepared

  3. in the currency set by the ministry of finance

  4. in the currency set by the government
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B Correct answer
Explanation

According to the money measurement concept in accounting, transactions and events should be recorded in the currency of the country where the books of accounts are being prepared, regardless of where the transaction takes place. This ensures consistency in financial reporting and avoids confusion from multiple currencies in a single set of accounts.

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