Question

Effects of an event must be recognised in the same accounting period.. Is of which concept of accounting

Answer 1

Answer:

Timeliness Concept

Explanation:

The info related to a particular financial year must be provided in the same year or it loses its importance.

Answer 2

Answer:

Effects of an event must be recognized in the same accounting period Matching concept.

Explanation:

According to the Matching concept effects of an event must be recognized in the same accounting period.

• Every businessman is eager to make a maximum profit at a minimum price.
• hence he tries to find out the revenue and cost of this year and compares it with another year and thus he can make an idea about the progress or downfall of the business.
• Revenue and expense should match with each other is the main motto of the matching concept.
• Evidence must be present for every transaction.
• The matching concept is also called as the concept of efforts and accomplishment.
• The objective is that accounting records be made in such a manner that cost may be compared with revenue.

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