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Qualitative transactions are not recorded in accounts due to the ________________ concept.
Realization
Accrual
Dual
Money measurement
- Realization Concept: This concept focuses on recognizing revenue when it is earned and realizable, regardless of when cash is received. It's not primarily concerned with qualitative data.
- Accrual Concept: Under this principle, revenues and expenses are recorded when they occur, not when the cash is exchanged. Like the realization concept, it deals with timing in financial transactions.
- Dual Aspect Concept: Rooted in the accounting equation (Assets = Liabilities + Equity), this concept ensures every transaction is recorded with equal debit and credit entries.
- Money Measurement Concept: This principle states that only transactions that can be measured in monetary terms are recorded in the accounts. Therefore, qualitative transactions are excluded.
By: Ankur sharma ProfileResourcesReport error
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