Question

What is matching concept? Why should the business concern to follow this concept. Discuss​

Answer 1

Answer:

The matching principle requires that revenues and any related expenses be recognized together in the same reporting period.

Because use of the matching principle can be labor-intensive, company controllers do not usually employ it for immaterial items.

Answer 2

Explanation:

What is matching concept Why should a business concern follow this concept?

Thus, according to the matching concept, the expense of Rs 900 will be taken into account and notRs 1200 for determining profit, as the benefit of only Rs 900 is availed in the current accounting period. The business entities follow this concept mainly to ascertain the true profit or loss during an accounting period.