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WAEC Accounting 2021 Objective — Question 3

Question 3 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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A limitation of the money measurement concept is that

  • A. it results in inaccurate financial statements
  • B. financial statement is not easily understood
  • C. important non-monetary activities are not reportedCorrect
  • D. the reports are not comparable to that of other businesses

Explanation

The money measurement concept states that only events with monetary value should be recorded; significant non-monetary events are ignored due to this limitation.

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