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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
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explain the Money Measurement Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Explain 'Matching Concept' of GAAP.
Explain any two basic concepts of accounting.
Explain the complete disclosure principle.
Name any four concepts of GAAP.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
