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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
Explain the Money Measurement Concept.
This concept assumes that the business will continue to exist for a long time in the future.
This principle suggests that every debit has a corresponding and equal credit.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
“The capital provided by the owner is a liability of the firm.” Answer with reference to the concept of Accounting.
"Every transaction affects at least three accounts." Comment.
Explain the money measurement principle of accounting.
Explain any two basic concepts of accounting.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the complete disclosure principle.
