Question

According to which of the following concepts, in determining the net income of business,all costs which are applicable to the revenue of the period should be charged against that revenue? ​

Answer 1

Answer:

According to matching concepts, while determining the net income from business, all costs which are applicable to revenue of the period should be charged against that revenue.

In accrual accounting, matching concept states that expenses should be recorded during the period in which they are incurred, regardless of when cash transfer incurs.

Answer 2

Answer:

It's matching concept