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Section A Chapter 1 Unit - 5 
CA.S.S.Prathap 
Page 2


Section A Chapter 1 Unit - 5 
CA.S.S.Prathap 
Identification of objects , transactions and 
events 
Selection of standards (or) scale 
Evaluation of dimension of measurement 
standards  ( or ) scale  
In Accounting ,Money is the scale of measurement 
Page 3


Section A Chapter 1 Unit - 5 
CA.S.S.Prathap 
Identification of objects , transactions and 
events 
Selection of standards (or) scale 
Evaluation of dimension of measurement 
standards  ( or ) scale  
In Accounting ,Money is the scale of measurement 
Historical cost 
Current cost 
Realisable cost 
Present value 
Page 4


Section A Chapter 1 Unit - 5 
CA.S.S.Prathap 
Identification of objects , transactions and 
events 
Selection of standards (or) scale 
Evaluation of dimension of measurement 
standards  ( or ) scale  
In Accounting ,Money is the scale of measurement 
Historical cost 
Current cost 
Realisable cost 
Present value 
It is the amount paid on purchase 
(i.e.,) cash / purchase price 
It means acquisition price 
It is the Gross book value of a fixed asset  
Page 5


Section A Chapter 1 Unit - 5 
CA.S.S.Prathap 
Identification of objects , transactions and 
events 
Selection of standards (or) scale 
Evaluation of dimension of measurement 
standards  ( or ) scale  
In Accounting ,Money is the scale of measurement 
Historical cost 
Current cost 
Realisable cost 
Present value 
It is the amount paid on purchase 
(i.e.,) cash / purchase price 
It means acquisition price 
It is the Gross book value of a fixed asset  
It means 
replacement cost .  
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FAQs on PPT : Accounting as a Measurement Discipline - Accountancy Class 11 - Commerce

1. What is accounting as a measurement discipline?
Ans. Accounting as a measurement discipline refers to the practice of using standardized methods and principles to measure and record financial information. It involves the systematic measurement, processing, and communication of financial data to provide relevant and reliable information for decision-making purposes.
2. How does accounting measure financial performance?
Ans. Accounting measures financial performance by analyzing various financial statements such as the income statement, balance sheet, and cash flow statement. These statements provide information on revenues, expenses, assets, liabilities, and cash flows, which are used to assess the profitability, solvency, and liquidity of a business.
3. What are the key principles of accounting as a measurement discipline?
Ans. The key principles of accounting as a measurement discipline include: 1. Accrual principle: Revenue and expenses are recognized when earned or incurred, regardless of cash flow. 2. Matching principle: Expenses are matched with the revenue they generate during a specific accounting period. 3. Historical cost principle: Assets are recorded at their original cost, rather than their current market value. 4. Going concern principle: Financial statements are prepared under the assumption that the business will continue its operations in the foreseeable future. 5. Consistency principle: Accounting methods and principles should be applied consistently from one period to another for comparability.
4. How does accounting contribute to decision-making?
Ans. Accounting contributes to decision-making by providing relevant and reliable financial information. This information helps stakeholders, such as managers, investors, and creditors, to assess the financial performance, financial position, and cash flow of a business. It enables them to make informed decisions regarding investments, lending, resource allocation, pricing strategies, and overall business strategy.
5. What are the limitations of accounting as a measurement discipline?
Ans. The limitations of accounting as a measurement discipline include: 1. Subjectivity: Accounting involves judgment and estimation, which can introduce subjectivity and potential bias. 2. Historical focus: Accounting focuses on past events and transactions, which may not always reflect the current or future economic realities. 3. Simplification: Accounting involves simplifications and assumptions, which may not capture the full complexity of business operations. 4. Non-financial factors: Accounting primarily focuses on financial information and may not fully capture non-financial factors that can impact decision-making. 5. Potential manipulation: Accounting information can be manipulated or misrepresented, leading to inaccurate financial reporting.
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