In accounting records, a concern will include only the transactions
that can be expressed in terms of money i.e. every business transaction has to
measure in terms of money. Money has been regarded as the language of
accounting. “Accounting focuses on the measurement and reporting, in monetary
terms, of the flow of resources into and out of an organization, of the
resources controlled by the organization, and of the claims against those
resources”. Besides, Accounting is
limited to the production of information expressed in terms of a monetary unit,
it does not record and communicate other relevant but non-monetary information.
It ensured uniformity and comparability of the information.
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