Which principle states that only items expressed in money are included in the accounting records?

The principle that states only items expressed in money are included in the accounting records is the Monetary Unit Assumption. This assumption establishes that financial statements are prepared using a consistent unit of currency, allowing for the quantification and comparison of various financial transactions. It effectively disregards non-monetary items, meaning aspects like employee skills or customer loyalty, which cannot be expressed in monetary terms, are not recorded in the accounting records. This principle makes financial reporting clear and focused on measurable economic transactions, facilitating better decision-making for stakeholders based on numerical data.

In contrast, other principles mentioned, such as the Economic Entity Assumption, dictate that a corporation's finances must be kept separate from those of its owners or other businesses. The Time Period assumption allows businesses to divide their financial statements into distinct intervals for reporting purposes. The Going Concern Assumption presumes that a business will continue to operate indefinitely, influencing how assets and liabilities are accounted for. Each of these principles plays a critical role in accounting but does not specifically address the inclusion of monetary expressions in records as the Monetary Unit Assumption does.