Money measurement concept

mj (cpt) (28 Points)

03 May 2016  

What is meant by the bold words in context of lines ?

  • The monetary unit though an inelastic yardstick , remains indispensable tool of accounting

 

  • While trading , if a businessman sells goods worth rs.10 lakh at home and goods worth 1000$ in USA .These aren't amenable to even arithmetic treatment . So transactions are to be recorded at uniform monetary unit i.e. in one currency .

 

Thank you !