According to periodic matching of cost and revenue concept, a business man is not only to measure revenues in a particular accounting period but also has to calculate expenses which can be assigned in earning such revenues
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According to periodic matching of cost and revenue concept, a business man is not only to measure revenues in a particular accounting period but also has to calculate expenses which can be assigned in earning such revenues. The given statement is correct.
Explanation:
Yes, that's true. According to the periodic matching of cost and revenue concept, businesses must match their expenses with the revenues that those expenses helped generate in a particular accounting period. This means that when a business earns revenue in a given period, it must also recognize and record all of the expenses that were incurred to generate that revenue.
For example, if a business earns $10,000 in revenue in a given month, it must also account for any expenses that were incurred during that month to earn that revenue, such as the cost of goods sold, employee salaries, rent, and other overhead costs. By doing so, the business can accurately determine its profitability for that period and make informed decisions about future investments and expenses
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