Which accounting convention has the effect that the employees will not appear as an asset on the entity's balance sheet?
A) entity convention
B) stable monetary unit convention
C) money measurement convention
D) accounting period convention

Question

Quizplus · Accepted Answer

The money measurement convention states that only transactions that can be quantified in monetary terms will be included in the entity's financial statements. Therefore, employees will not appear as an asset on the balance sheet, as their value cannot be accurately quantified in monetary terms.

Which Accounting Convention Has the Effect That the Employees Will