Money Measurement Concept Limits Recorded Assets

Steps:

• Recognize employees as valuable human resources but not quantified in financial statements.
• Recall accounting concepts that restrict what is recorded.
• Identify money measurement as the principle excluding non-monetary items like employee skills.
• Confirm it explains why skilled employees, despite being assets, hold no recorded value.

Why B is correct:

• The money measurement concept requires only items reliably measurable in monetary terms to be included in financial statements, excluding subjective human asset values.

Why the others are wrong:

• A. Duality refers to the double-entry bookkeeping system, unrelated to asset valuation.
• C. Realisation involves recognizing revenue only when earned and realizable, not asset recording.
• D. Substance over form prioritizes economic reality over legal form, which would support recording human value if applicable.

Final answer: B