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प्रश्न
According to this principle, cost of a particular period should be charged from the revenue of same period only.
विकल्प
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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उत्तर
Matching principle
Explanation:
The matching principle states that expenses should be recorded and matched with the revenues of the same period in which they were incurred. This principle ensures that income statements reflect the true profitability of a period by aligning the costs associated with generating revenue with the revenue itself.
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संबंधित प्रश्न
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
This principle suggests that every debit has a corresponding and equal credit.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
What is business entity concept of accounting?
“Firms live forever.” Explain with reference to the concept of accounting.
Name the basic principles of accounting.
“Accounts should disclose all material information” (with reference to the concept of accounting). Justify either for or against by giving two reasons.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain matching principle of accounting.
Explain the Dual Aspect Principle.
