2.
3. A firm earns revenue of Rs. 21,000 and the expenses to earn this revenue are Rs. 15,000. Calculate
its income.
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Answer:'Matching concept ' is one of the ofFundamental assumptions and has a significance in accounting.. It entails that expenses should be matched with the income of that accounting period inorder to obtain/ascertain the financial result of that period.....So for this purpose..we will match expenses with revenue of that period...
Given Revenue= 21000
Expenses = 15000
Income will be = revenue - expenses= 21000 - 15000 = 6000..
Explanation:
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