Fundament of Accountancy : Definition of Accounting

CHAPTER 1 INTRODUCTION TO ACCOUNTING  Business Events – Those events which occur in the normal operation of a business like, sale and purchase of goods are called business events  Types of Business Events – There are two types of business events.  Monetary Events – Those business events that can be expressed in monetary terms are called monetary events. These affect the financial position of the business. For example, sale and purchase of goods.  Non Monetary Events – Those events that cannot be expressed in monetary terms like, recruitment of an employee are called non-monetary events. NOTE: In accountancy, only monetary events are recorded in the books of account, ignoring the non-monetary events. ... https://www.youtube.com/watch?v=EpGcYHRN5gE