state which accounting convention principle is followed violated in the following cases and company in cure a heavy amount of rupees 15,00000 on publicity through TV and radio it wishes to spread the expenditure over a period of 5 years ( I) resuming benefits are expected in that year only ( ii) benefits are expected over a period of 5 years. (b). our company wishes to decrease the rate of the depreciation from 15 % to 10% in view of the inadequate profit in the current year
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Answer:
The process of ascertaining the amount of profit earned or the loss incurred during a particular period involves deduction of related expenses from the revenue earned during that period.
The process of ascertaining the amount of profit earned or the loss incurred during a particular period involves deduction of related expenses from the revenue earned during that period. The matching concept emphasises exactly on this aspect. It states that expenses incurred in an accounting period should be matched with revenues during that period.
The process of ascertaining the amount of profit earned or the loss incurred during a particular period involves deduction of related expenses from the revenue earned during that period. The matching concept emphasises exactly on this aspect. It states that expenses incurred in an accounting period should be matched with revenues during that period.It follows from this that the revenue and expenses incurred to earn these revenues must belong to the same accounting period..