Question

According to which of the following concepts ,in determining the net income from buisness,all costs which are applicable to the revenue of the period should be charged against the revenue
1. Matching concept
2.money measurement concept
3.cost concept
4.dual aspect concept

Answer 1

Answer:

The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them.

The purpose of the matching concept is to avoid misstating earnings for a period. Reporting revenues for a period without stating all the expenses that brought them could result in overstated profits.

Note that applying the matching concept requires accrual accounting, by which companies recognize revenues when they earn them and expenses in the period they incur them. Actual cash flows from these transactions may occur at other times, even in different periods.

Answer 2

Answer:

Matching concept is the right answer

Explanation:

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