Money measurement concept

What is meant by the bold words in context of lines ?

  • The monetary unit though an inelastic yardstick , remains indispensable tool of accounting

 

  • While trading , if a businessman sells goods worth rs.10 lakh at home and goods worth 1000$ in USA .These aren't amenable to even arithmetic treatment . So transactions are to be recorded at uniform monetary unit i.e. in one currency .

 

Thank you !

 

 

Replies (1)

1. It means money ignores the concept of inflation 

2. It means that the both values are in different currencies, hence they cannot be simply added 

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