A business transaction to be recognized in accounting should involve exchange of values and quantifiable in terms of moneySelect one:TrueFalse

Assessment of the Statement

The statement asserts that a business transaction recognized in accounting must involve an exchange of values and be quantifiable in terms of money.

Analysis

1. Exchange of Values: Business transactions usually involve an exchange of economic benefits between parties, such as selling goods for cash or receiving services for payment. This is a fundamental principle of accounting known as the exchange principle.

2. Quantifiable in Terms of Money: For a transaction to be recorded in the financial statements, it must be measurable in monetary terms. This ensures that the effects of the transaction can be accurately reflected in financial reports, allowing stakeholders to understand the financial position and performance of the business.

Conclusion

Given these two points, the statement is True.

Therefore, the correct answer is True.