Multiple choice

Financial accounting does not recognize non-financial parameters implying that the qualitative aspects are also converted to a financial indicator.

  1. True

  2. False

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A Correct answer
Explanation

Explanation: Financial accounting measures only quantitative (monetary) terms. Qualitative terms like quality of employees, honesty of the employees cannot be depicted by the financial accounting. However, HR accounting has been the practice among leading companies where HR are considered as Assets.