NOTES

Ans.
As per Money Measurement concept, only those transactions, which can be measured in terms of
money are recorded. Since money is the medium of exchange and the standard of economic value,
this concept requires that those transactions alone that are capable of being measured in terms of
money be only to be recorded in the books of accounts. Transactions and events that cannot be
expressed in terms of money are not recorded in the business books.  
In Matching concept, all expenses matched with the revenue of that period should only be taken
into consideration. In the financial statements of the organization if any revenue is recognized then
expenses related to earn that revenue should also be recognized.